breaking / Big Tech

🚨 Microsoft Just Made $92.3 Billion in Three Months — and Azure Grew 48%

Microsoft posted $92.3B in quarterly revenue, up 19% and ahead of estimates, as Azure grew 48%. Shares rose about 4% after hours.

By Tech Arcade··2 min read

Microsoft Just Made $92.3 Billion in Three Months — and Azure Grew 48% — Tech Arcade
Photo: MChe Lee / Unsplash

Microsoft just reported $92.3 billion in revenue for the quarter to September 30, up 19% from a year ago and about $1.65 billion above what Wall Street expected (Microsoft, Yahoo Finance).

The results landed after the US market closed on Wednesday, October 28. The engine was Azure, Microsoft’s cloud platform, which grew 48% to $33.17 billion.

Investors liked it. Shares rose about 4% in after-hours trading (Yahoo Finance, CNBC).

⚡ What Happened

  • Revenue: $92.3 billion, up 19%, against roughly $90.6 billion expected.
  • Earnings per share: $4.89 adjusted, up 18%, against $4.73 expected. On a standard accounting basis it was $4.92, up 32%.
  • Microsoft Cloud: $63.9 billion, up 30%.
  • Net income: $36.6 billion, up 32%.

It’s also the first quarter under Microsoft’s new reporting structure. The business now splits into two segments: Agents and Infra ($76.8 billion, up 25%) and Devices and Consumer ($15.5 billion, down 3%) (Microsoft).

“Results exceeded expectations across revenue, operating income, and earnings per share.” — Amy Hood, Microsoft CFO

🧠 Why It Matters

For two years, the question hanging over big tech has been whether the AI spending spree would ever show up in revenue. Tonight Microsoft has a fairly loud answer: a cloud business adding more than $10 billion a quarter compared with last year.

The other surprise is on spending. Capital expenditure came in below analyst estimates (Yahoo Finance, CNBC). So you get faster growth with a smaller-than-feared bill, and that pairing is why the stock moved.

The OpenAI stake flipped too. It added $207 million to net income this quarter. A year ago it took off $3.1 billion.

It’s a sharp contrast with Alphabet, which also reported a strong cloud quarter today and still saw its stock drop.

🔜 What To Watch

  • The earnings call at 2:30 p.m. Pacific (21:30 London) tonight, especially any guidance on Azure growth and spending for the rest of the fiscal year.
  • Whether the 4% after-hours gain holds when markets open on Thursday.
  • Devices and Consumer, the one segment that shrank.

Analyst reaction and forward guidance are still coming in.

Sources

❓ Quick answers

How much revenue did Microsoft make in Q1 fiscal 2027?

Microsoft reported $92.3 billion in revenue for the quarter ended September 30, 2026, up 19% year over year, according to its October 28 earnings release.

How fast did Azure grow in Microsoft's latest quarter?

Azure revenue grew 48% to $33.17 billion, according to Microsoft's results reported on October 28, 2026.

Did Microsoft beat earnings expectations?

Yes. Adjusted EPS was $4.89 versus $4.73 expected, and revenue of $92.3 billion beat estimates of about $90.6 billion, per Yahoo Finance; shares rose about 4% after hours.