Microsoft delivered a resounding beat on Wednesday, with first-quarter fiscal 2027 results — covering the three months ended September 30 — that topped expectations across the board. Revenue reached $92.28 billion, up 19% from a year earlier and comfortably above the roughly $90.62 billion FactSet consensus, while adjusted earnings of $4.89 a share beat the $4.71 estimate.
The star of the quarter was Azure. Cloud revenue hit $33.17 billion with growth accelerating to 48%, up from 42% the prior quarter, and the broader Microsoft Cloud business grew 30% to $63.9 billion. Net profit rose 32% to $36.63 billion — or 18% on an adjusted basis excluding the effects of its OpenAI investment. Microsoft even guided Azure growth of 49-50% for the current quarter, signaling no slowdown ahead.
Investors also welcomed the discipline behind the numbers. Capital spending of $45.2 billion came in well below the $50.67 billion analysts feared, and free cash flow stayed positive at $18.6 billion — a deliberate and striking contrast with Alphabet and Meta, both burning cash on AI build-outs. Shares rose 3-4% in after-hours trading in response.
The quarter cemented Microsoft’s position as the cloud leader investors trust to monetize AI without torching its balance sheet. With Azure reaccelerating and spending under control, the company heads into the holiday quarter with both growth and credibility on its side.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.