Microsoft delivers strong Q3, Azure growth up 48%

Published October 28, 2026

Microsoft reported better-than-expected first quarter earnings as Microsoft Cloud revenue was $63.9 billion, up 30% from a year ago.

The company reported first quarter net income of $36.6 billion, or $4.92 a share, on revenue of $92.3 billion, up 19% from a year ago. Non-GAAP earnings were $4.89 a share.

Wall Street was expecting Microsoft to report fourth quarter earnings of $4.72 a share on revenue of $90.74 billion.

MSFT Q1 2027

CEO Satya Nadella said the company is showing strong demand across its services.

By the numbers:

  • Revenue from the Agents and Infra unit was $76.8 billion, up 25%.
  • Azure revenue was up 48% from a year ago.
  • Microsoft 365 commercial cloud revenue was up 18%.
  • Devices and consumer revenue was down 3% from a year ago.
Microsoft Q1 2027