Microsoft reported fiscal Q1 2027 revenue of $92.28 billion on October 28, up 19% from a year earlier and ahead of the $90.69 billion LSEG estimate.Azure revenue rose 48% to $33.17 billion, the first Microsoft reported fiscal Q1 2027 revenue of $92.28 billion on October 28, up 19% from a year earlier and ahead of the $90.69 billion LSEG estimate.Azure revenue rose 48% to $33.17 billion, the first
Microsoft (MSFT) Q1 FY2027 Earnings: Azure Revenue Jumps 48% to $33.2 Billion
Microsoft reported fiscal Q1 2027 revenue of $92.28 billion on October 28, up 19% from a year earlier and ahead of the $90.69 billion LSEG estimate.
Azure revenue rose 48% to $33.17 billion, the first time Microsoft has disclosed the figure in dollars, and the company guided to 49% to 50% Azure growth next quarter.
Shares rose about 4% in extended trading, CNBC reported, as capex came in below expectations and free cash flow beat.
On MEXC, the MSFTUSDT perpetual contract rose 2.7% in the first hour after the release and was up 3.1% by 9:00 p.m. ET.
Key Takeaways
- Revenue: $92.28 billion, up 19%, above the $90.69 billion LSEG estimate; non-GAAP EPS of $4.89 beat the $4.73 expected.
- Azure: Revenue up 48% to $33.17 billion, accelerating from a restated 42% in the prior quarter and above Microsoft's own 44%–45% guidance.
- Spending: Capex including finance leases was $45.2 billion, below the more than $50 billion Microsoft had guided, because some third-party capacity arrived late.
- Backlog: Commercial remaining performance obligation rose 73% to $677 billion, roughly flat from the prior quarter.
- Outlook: Q2 revenue guidance of $96.0 billion to $97.1 billion, above the $95.60 billion LSEG consensus.
- MEXC reaction: MSFTUSDT rose from 532.05 to 546.33 USDT in the first hour and peaked at 568.39 during the call, with funding unchanged at 0%.
Microsoft Q1 FY2027 Results at a Glance
Microsoft's fiscal year starts on July 1, so fiscal Q1 2027 covers July to September 2026. Company figures come from Microsoft's earnings release.
- Revenue: $92.28 billion, up 19%.
- Operating income: $45.92 billion, up 21%.
- Net income (GAAP): $36.63 billion, up 32%.
- Diluted EPS: $4.92 GAAP and $4.89 non-GAAP, compared with $3.72 and $4.13 a year earlier.
- Microsoft Cloud revenue: $63.9 billion, up 30%.
- Shareholder returns: $10.2 billion in dividends and buybacks.
Non-GAAP figures exclude only Microsoft's OpenAI investments, which added a $207 million gain this quarter after a $3.1 billion loss a year earlier. That is why GAAP EPS grew faster than non-GAAP EPS.
New Segments and the First Azure Dollar Figure
Microsoft now reports two segments instead of three, with prior periods recast.
- Agents and Infra: revenue of $76.80 billion, up 25%, covering Azure, Microsoft 365 cloud and server licensing.
- Devices and Consumer: revenue of $15.48 billion, down 3%, covering Windows, devices, Xbox and search.
Azure revenue of $33.17 billion beat the $32.84 billion Visible Alpha estimate, according to Reuters.
The 48% growth rate uses a narrower Azure definition that Microsoft introduced in September, which excludes GitHub and some other developer and industry cloud services. On that basis, the June quarter grew 42%, not the 43% originally reported, so 48% against 42% is the like-for-like comparison.
Elsewhere, Microsoft 365 commercial cloud grew 17%, search and advertising revenue excluding traffic acquisition costs grew 12%, and Windows OEM and devices revenue fell 22% to $3.55 billion.
Microsoft Cloud gross margin slipped to 66% from 68% a year earlier, which Microsoft linked to a sales mix shifting toward Azure.
Capex Came In Lower, and Free Cash Flow Beat
Capex including finance leases was $45.2 billion, up about 30% from a year earlier but below the $50.67 billion StreetAccount estimate.
Microsoft said on the call that some expected third-party capacity deliveries slipped out of the quarter, and that roughly three quarters of spending went to short-lived assets such as chips and servers.
Operating cash flow rose 29% to $58.0 billion, leaving free cash flow of $18.6 billion, well above the $8.54 billion Visible Alpha estimate cited by Reuters.
Commercial remaining performance obligation reached $677 billion, up 73%, with about 30% expected to be recognized over the next 12 months. Commercial bookings fell 12%.
What Microsoft Guided for Q2 FY2027
- Revenue: $96.0 billion to $97.1 billion, up 18% to 19%.
- Agents and Infra: $80.1 billion to $80.7 billion.
- Azure growth: 49% to 50% in constant currency, against the 45.1% StreetAccount consensus.
- Operating margin: down slightly from a year earlier.
- Capex: more than $50 billion for the quarter, with calendar 2026 spending of about $170 billion after the capacity delays.
Microsoft said it expects to remain free cash flow positive in fiscal 2027.
The cost guidance includes an estimate for the voluntary exit offer Microsoft confirmed on October 26, which covers about 60,000 employees, Reuters reported.
Our Microsoft Q1 FY2027 preview set the bar at about 45% Azure growth; the result and the guidance both cleared it.
How MSFT Futures Reacted on MEXC
MSFTUSDT on MEXC began repricing as soon as the release crossed and traded through the earnings call.
MEXC MSFTUSDT hourly closes and turnover from 8:00 a.m. to 9:00 p.m. ET on October 28, 2026. Source: MEXC
Price: the contract closed the 3:00–4:00 p.m. ET hour at 532.05 USDT and reached 565.39 within the first hour, up 6.3%, before closing that hour at 546.33, up 2.68%. It peaked at 568.39 between 5:00 and 6:00 p.m., as the call was under way, and stood at 548.30 at 9:00 p.m., up 3.05%.
Trading activity: first-hour turnover was about 9.53 million USDT, about 70 times the hourly average of the preceding 24 hours. The five hours after the close traded about 15.85 million USDT, five times the 3.03 million USDT traded from 9:00 a.m. to 4:00 p.m. ET.
Premium to index: the contract closed the first hour about 10 basis points above its index price and the second hour about 30 basis points below it, the widest gap of the night, as prices swung during the call. It then held within about 5 basis points.
Funding: MSFTUSDT settles every eight hours, and every settlement over the past two days was 0%, including the first one after the release at 00:00 UTC on October 29. Holding a long position did not get more expensive, even as trading activity spiked.
Following MSFT Through MEXC
The MSFTUSDT perpetual contract on MEXC offers a 24/7 market to follow Microsoft around earnings and outside Nasdaq hours, as covered in this guide to trading stock futures on MEXC.
Microsoft exposure is also available on MEXC spot through MSFTON, a tokenized representation of Microsoft stock.
For eligible users considering share ownership, MEXC RealStocks is a separate route; check availability and supported securities directly.
Perpetual contracts do not confer shareholder rights, including dividends, and carry funding, leverage and liquidation risks.
Microsoft's report dates and past reactions are tracked on our Microsoft earnings date page.
FAQ
Did Microsoft beat earnings expectations in Q1 FY2027?
Yes. Revenue of $92.28 billion beat the $90.69 billion LSEG estimate, and non-GAAP EPS of $4.89 beat the $4.73 expected. Azure revenue of $33.17 billion also beat estimates.
How much did Azure grow in Q1 FY2027?
Azure revenue grew 48% to $33.17 billion, in both reported and constant currency terms, up from a restated 42% in the prior quarter.
What is Microsoft's guidance for Q2 FY2027?
Microsoft expects revenue of $96.0 billion to $97.1 billion and Azure growth of 49% to 50% in constant currency, with capex above $50 billion.
Why are Microsoft's GAAP and non-GAAP EPS different?
Non-GAAP results exclude Microsoft's OpenAI investments. This quarter they added a $207 million gain, so GAAP EPS of $4.92 was slightly above non-GAAP EPS of $4.89.
What are Microsoft's new reporting segments?
From fiscal 2027, Microsoft reports Agents and Infra, which includes Azure and Microsoft 365 cloud, and Devices and Consumer, which includes Windows, devices, Xbox and search.
How did MSFT futures react on MEXC?
MSFTUSDT rose 2.68% in the first hour after the release, peaked 6.8% higher during the call and was up 3.05% at 9:00 p.m. ET, with funding unchanged at 0%.
Related Readings
Market Opportunity
Quack AI Price(Q)
$0.066258
$0.066258$0.066258
USD
Quack AI (Q) Live Price Chart
The articles shared on this page are sourced from public platforms and are provided for reference only. They do not represent the position or views of MEXC. All rights belong to James Mitchell. If you believe any content infringes upon the rights of a third party, please contact service@support.mexc.com for prompt removal. MEXC does not guarantee the accuracy, completeness, or timeliness of any content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be interpreted as a recommendation or endorsement by MEXC. For expert insights and in-depth analysis, visit MEXC Learn.
Latest Updates on Quack AI
View More
Kalshi CPI Futures: Can It Challenge Wall Street?
Kalshi is preparing to enter the institutional inflation derivatives market with proposed exchange-traded futures contracts linked to the U.S. Consumer Price Index (CPI). According to Bloomberg's October 23, 2026 report, the prediction-market operator is targeting a December launch for futures tracking both headline CPI and core CPI, which excludes food and energy. The company has engaged Michael Ashton, a former Barclays inflation trader known as the “Inflation Guy,” to help design the contracts and attract institutional interest from major banks and hedge funds
2026/10/26
DeFi Price Manipulation Attacks Hit 43 in 2026
DeFi price manipulation attacks have reached a new reported annual high in 2026, exposing persistent weaknesses in how decentralized financial protocols value assets, manage collateral, and respond to abnormal market conditions. According to DefiLlama data cited by RootData and other industry publications, 43 price manipulation incidents had been recorded by October 21, surpassing the previous full-year high of 27 incidents in 2022. Reported losses associated with the 2026 incidents totaled approximately $199 million, although their distribution reveals a more complex security picture than the headline count suggests
2026/10/26
Hyperliquid HIP-3: Can Payward Bring Perps to the US?
Payward, the parent company of Kraken, is pursuing a regulated pathway for bringing onchain perpetual futures to U.S. customers through Hyperliquid's HIP-3* infrastructure. The company announced its plan on September 16, 2026, while Hyperliquid's October 26 update drew renewed attention to the proposed permissioned market architecture. Under the arrangement, Bitnomial would operate the exchange and clearing functions, NinjaTrader Clearing would maintain customer accounts, and Hyperliquid would supply the blockchain-based order book used to execute and record transactions
2026/10/27
You May Also Like
HOT
Currently trending cryptocurrencies that are gaining significant market attention
Crypto Prices
The cryptocurrencies with the highest trading volume
Newly Added
Recently listed cryptocurrencies that are available for trading