Microsoft Q1 revenue beats estimates as cloud grows 30%
Key points
- Microsoft (NASDAQ:MSFT) reported Microsoft Cloud revenue of $63.9 billion in the first quarter of fiscal 2027, up 30% year over year.
- Microsoft beat analyst estimates for overall revenue, operating income and earnings per share.
- Microsoft returned $10.2 billion through dividends and share repurchases during the quarter, while performance varied across its consumer businesses.
Microsoft (NASDAQ:MSFT) reported first-quarter fiscal 2027 results for the quarter ended September 30, 2026, beating analyst expectations for revenue, operating income and earnings per share.
Microsoft Cloud revenue reached $63.9 billion, up 30% year over year, or 31% in constant currency.
Microsoft 365 Consumer Cloud revenue increased 17% year over year, while Industry Solutions Cloud revenue rose 10%.
Devices and Consumer revenue totaled $15.5 billion, down 3% year over year, as Search and advertising revenue excluding traffic acquisition costs rose 12%, Xbox content and services declined 2%, and Windows OEM and Devices fell 22%.
Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the quarter, while its cloud business continued to account for a significant portion of its reported revenue.
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