Microsoft posts record $92.3 billion revenue for 10th quarter running

Microsoft closed the first quarter of its 2027 fiscal year with $92.3 billion in revenue, up 19% from a year earlier — the company’s 10th straight quarter of record-breaking revenue. Net income reached $36.6 billion, up 32% on a GAAP basis, with profitability keeping pace with the top line.

That growth leaned on Microsoft Cloud, where revenue climbed 30% to $63.9 billion. The company has split its reporting into two new segments — Agents and Infra, and Devices and Consumer — and the split exposed a soft spot: Devices and Consumer revenue fell 3% to $15.5 billion, dragged down by a 22% drop in Windows OEM and devices sales.

Not all of that cloud revenue is AI-driven: Microsoft 365 brought in nearly $28 billion, while Azure — which also runs plenty of conventional enterprise software — generated the most at $33.2 billion. AI still accounts for a real slice: Microsoft booked $10 billion in revenue from OpenAI, which keeps routing much of its workload through Microsoft’s cloud even as it adds AWS and Oracle as providers. Anthropic also runs on Azure. Microsoft said its commercial backlog — contracted future revenue from AI labs and other customers — grew 73% to $677 billion.

That AI buildout comes at a cost. Capital expenditures hit $45.2 billion for the quarter, another all-time high, as Microsoft keeps spending heavily on the infrastructure those AI contracts will eventually run on.

Why it matters

The results show Microsoft’s AI bet paying off in bookings and cloud growth even as the new segmentation flags cracks in its PC and device business. They also underline how deeply OpenAI and Microsoft’s finances remain intertwined even as both court rival cloud providers.