Redmond:Microsoft Corporation announced a significant 19% rise in revenue, reaching $92.3 billion for the July-September quarter. This increase is attributed to robust growth in its cloud computing sector.
According to Anadolu Agency – English, the tech giant's financial results for the first quarter of fiscal year 2027, concluding on September 30, highlighted a 32% surge in net income to $36.6 billion. This is a jump from the $27.7 billion reported in the same quarter the previous year.
The company's statement revealed that diluted earnings per share rose by 32% to $4.92, compared to $3.72 in the prior year. Operating income also saw a 21% increase, reaching $45.9 billion, up from approximately $38 billion the previous year.
Microsoft's adjusted net income, excluding investments in OpenAI, increased by 18% to $36.4 billion, with adjusted earnings per share also rising by 18% to $4.89. The company's cloud division, Microsoft Cloud, reported revenue of $63.9 billion, marking a 30% increase year-on-year. Additionally, revenue from its Azure cloud computing platform surged by 48%.
The company's Agents and Infra segment saw a 25% revenue increase, amounting to $76.8 billion, while commercial remaining performance obligations rose by 73% to $677 billion. Microsoft 365 commercial cloud revenue and consumer cloud revenue both grew by 17%.
Conversely, the Devices and Consumer segment experienced a 3% decline in revenue to $15.5 billion. The Windows OEM and Devices revenue fell 22%, and Xbox content and services revenue decreased by 2%. However, search and advertising revenue, excluding traffic acquisition costs, increased by 12%.
Microsoft Chairman and CEO Satya Nadella emphasized the company's commitment to delivering enhanced capability and cost efficiency across its product offerings. Chief Financial Officer Amy Hood noted the strong momentum in Microsoft's cloud business, with cloud revenue growth accelerating to 30% year-over-year.
During the quarter, Microsoft returned $10.2 billion to shareholders through dividends and share repurchases. The company is set to provide its financial outlook during its quarterly earnings conference call.