Microsoft Reports $92.3 Billion Quarterly Revenue as Azure Sales Rise 48%

Microsoft reported $92.3 billion in revenue for the three months ended September 30, 2026, an increase of 19% from the same period a year earlier, according to results released on October 28. The company said its cloud operations expanded as businesses continued purchasing computing services and artificial-intelligence capacity.

Operating income rose 21% to $45.9 billion. Net income under generally accepted accounting principles increased 32% to $36.6 billion, and diluted earnings per share rose to $4.92. Microsoft also provided adjusted earnings figures that exclude the impact of its investments in OpenAI: adjusted net income was $36.4 billion and adjusted diluted earnings per share were $4.89. These adjusted measures should not be confused with the reported GAAP figures.

Azure revenue increased 48% year over year, exceeding Microsoft's previously published constant-currency growth forecast of 44% to 45%. Azure supplies cloud computing and related services to enterprises, including infrastructure used to run AI systems. Microsoft Cloud revenue, a broader company measure, reached $63.9 billion, up 30% from a year earlier.

Ahead of the announcement, an October 19 MT Newswires report carried by Yahoo Finance said Morgan Stanley expected Microsoft to report approximately $90.24 billion in revenue and $4.73 in earnings per share. These were analysts' advance expectations, not company results. The newly reported revenue was higher, although direct comparisons of earnings per share require attention to adjusted versus reported accounting measures.

Under Microsoft's reorganized financial reporting, the Agents and Infra division generated $76.8 billion in revenue, an increase of 25%. The Devices and Consumer division recorded $15.5 billion, down 3%. The company reported a 22% decline in Windows OEM and Devices revenue and a 2% decline in Xbox content and services revenue. The divergent figures show that the company's faster-growing business services did not translate into growth across every product line.

The company also reported commercial remaining performance obligations of $677 billion, up 73%. This measure represents contracted business not yet recognized as revenue, rather than cash already received or guaranteed profit. Microsoft returned $10.2 billion to shareholders through dividends and repurchases during the quarter.

The October 28 figures cover a completed quarter. Management's future guidance, scheduled for the subsequent earnings conference call, remains prospective and may change with customer demand, competition, supply constraints and economic conditions.