Microsoft Revenue Rises 19% as Azure Grows 48%

Microsoft reported fiscal first-quarter revenue of $92.28 billion, up 19% from a year earlier, as Azure sales grew 48% and the company generated $18.6 billion in free cash flow. The results, for the three months ended September 30, also included net income of about $36.6 billion, up 32%. The quarter began Microsoft’s fiscal 2027. Azure generated $33.17 billion in revenue, the first time Microsoft disclosed a quarterly dollar figure for the cloud business. Its growth exceeded the 44% to 45% range Chief Financial Officer Amy Hood had forecast in July. Microsoft Cloud revenue reached $63.9 billion, up 30%, while the company’s commercial remaining performance obligation, representing contracted revenue not yet recognized, rose 73% to $677 billion. The disclosure offers investors a direct measure of Azure’s scale alongside other cloud businesses. Microsoft’s new Agents and Infra reporting segment, which includes Azure and several other cloud and infrastructure services, recorded $76.8 billion in revenue, up 25%. Its Devices and Consumer segment, which includes Windows and Xbox, brought in $15.5 billion, down 3%. Microsoft spent $45.2 billion on capital expenditure during the...