Microsoft reported revenue of $92.3 billion for the first quarter of fiscal 2027, marking a 19% increase year-on-year. Adjusted earnings stood at $4.89 per share, beating Wall Street expectations as strong demand for cloud computing and artificial intelligence supported growth across its business. (Sources: CNBC, BBC News, Microsoft Investor Relations, Reuters)
Microsoft's Azure cloud business recorded 48% year-on-year growth, with revenue reaching approximately $33.2 billion. The performance highlighted rising demand for cloud infrastructure required to train and run AI systems, reinforcing Azure's position as a key driver of Microsoft's expansion.
Microsoft cloud revenue climbed 30% year-on-year to $63.9 billion, supported by strong performance in Azure and Microsoft 365 commercial cloud services. Growing adoption of AI-powered offerings is strengthening Microsoft's recurring revenue base and expanding opportunities to monetise its investments in artificial intelligence.
Microsoft spent $45.2 billion on capital expenditure during the quarter, below the roughly $50 billion previously projected. The company also lowered its capital expenditure forecast for 2026 to $170 billion from $175 billion, partly reflecting delays in third-party computing capacity. Investors remain focused on whether the company's substantial AI infrastructure investments will generate sufficient returns.
Microsoft's net income rose 32% to $36.6 billion on a reported basis, while free cash flow reached $18.6 billion. Strong profitability and cash generation provide the company with additional financial flexibility to fund its AI infrastructure expansion, develop new products and strengthen its competitive position in cloud computing.