Microsoft's Azure revenue hits $33.2B as OpenAI deal brings $10B in quarter
10/29/2026 — 10/29, 07:18·7 sources (all)·10 reports (all)·In the 2026-10-29 briefing
Key takeaways
- Microsoft reported first-quarter FY2027 revenue of $92.3B, up 19%, and said Azure revenue reached $33.2B, up 48% year over year, or about 36…
- OpenAI still had $7.2B in receivables, and Microsoft's ownership stake fell to about 24%. Reports also describe Azure's growth as accelerati…
Background & analysis
On October 28, 2026, Microsoft reported results for the first quarter of fiscal 2027, covering the three months ended September 30, 2026. Revenue rose 19% to $92.3 billion, operating income reached $45.9 billion and net income increased 32% to $36.6 billion, according to a press release quoted by Techmeme. IT之家, writing in Chinese, gave a more granular breakdown: revenue of $92.279 billion up 19% year over year, gross profit of $62.559 billion, a gross margin of 67.79%, net income attributable to shareholders of $36.629 billion up 32%, operating cash flow of $58 billion, basic earnings per share of $4.93 and diluted EPS of $4.92 up 32%, plus a debt-to-asset ratio of 39.6%. Bloomberg Technology reported early on October 29 that cloud revenue beat expectations and suggested Microsoft was beginning to reap returns on its large AI investments, without specifying the size of the beat.
The central development was a disclosure change. Microsoft has long shared only growth percentages or vague revenue milestones for Azure, but in this quarter's report it disclosed Azure quarterly revenue in dollars for the first time: $33.2 billion, up 48% from a year earlier, as reported by GeekWire and TechCrunch. The figure compares with $30.7 billion for Google Cloud in the same period. TechCrunch calculated that Google Cloud's growth rate was about twice Azure's, even though Azure is already Microsoft's largest and fastest-growing product line, accounting for roughly 36% of the quarter's revenue. Total revenue rose 19% to $92.3 billion, while capital spending came in at $45.2 billion, below Microsoft's earlier forecast of more than $50 billion.
Later the same day, Bloomberg reported that sales at Azure were up 48% and that revenue from Microsoft's commercial agreement with OpenAI totaled $10 billion. According to TechCrunch and cnBeta, which cited Microsoft regulatory filings, that $10 billion includes revenue-sharing and other commercial arrangements and represented close to 11% of the quarter's $92.3 billion in total revenue. The filings also showed that OpenAI had $7.2 billion in accounts receivable as of the end of September, up from $6 billion at the end of June, and that Microsoft's ownership stake in OpenAI had fallen to about 24%. cnBeta added that Microsoft recognized $24.1 billion of OpenAI-related revenue across fiscal 2026 and quoted Microsoft's statement that the April agreement obliges OpenAI to continue revenue sharing with Microsoft through 2030 even if it expands work with other cloud providers. Microsoft did not break down how much of the $10 billion came from Azure versus revenue sharing, and no further detail has been published.
AI-generated from 8 reports · updated 1 hour ago
Latest turnMicrosoft recorded $10 billion in revenue from its commercial arrangements with OpenAI in Q1, including revenue-sharing payments, accounting for nearly 11% of its total quarterly revenue, according to TechCrunch citing a filing. The filing also shows $7.2 billion in outstanding receivables from OpenAI.
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Microsoft recorded $10 billion in revenue from its commercial arrangements with OpenAI in Q1, including revenue-sharing payments, accounting for nearly 11% of its total quarterly revenue, according to TechCrunch citing a filing. The filing also shows $7.2 billion in outstanding receivables from OpenAI.
TechmemeAI score 75Microsoft reported $33.2 billion in Azure revenue for the July–September quarter, up 48% year over year — the first time it has disclosed the figure in dollars. That edges past Google Cloud's $30.7 billion, though Google Cloud grew about twice as fast, and Azure is now Microsoft's largest and fastest-growing product line.
TechCrunch · AIAI score 57Microsoft's regulatory filing shows it booked $10 billion in revenue from its OpenAI partnership in the quarter ended September 30, including revenue sharing — nearly 11% of its $92.3 billion in total revenue. OpenAI carried $7.2 billion in receivables at quarter's end, and Microsoft's stake slipped to about 24%.
cnBetaAI score 63Microsoft said it made $10 billion in revenue from commercial arrangements with OpenAI, including revenue-sharing payments, in the quarter ending September 30. The figure underscores how financially dependent the two partners remain on each other.
TechCrunch · AIAI score 59Microsoft reported cloud revenue ahead of expectations, with Azure sales up 48% year over year. Revenue from its commercial deal with OpenAI totaled $10 billion, according to Bloomberg, a sign the company's heavy AI spending is starting to show up in its results.
Bloomberg TechnologyAI score 59According to Wall Street News, Microsoft reported its fiscal Q1 2027 results with revenue and profit beating expectations, driven by a 48% year-over-year surge in Azure revenue to over $30 billion. Notably, capital expenditures came in below estimates, easing market concerns over AI spending.
华尔街见闻AI score 75Microsoft reported Azure revenue of $33.2 billion for the September quarter, up 48% and the first time it has disclosed the cloud unit's quarterly sales, GeekWire reported. Total revenue rose 19% to $92.3 billion, while capital spending of $45.2 billion came in below the company's forecast of more than $50 billion.
GeekWireAI score 60Microsoft reported quarterly revenue of $92.3B, up 19% year over year, with operating income of $45.9B and net income of $36.6B, up 32%. Azure revenue rose 48% to $33.2B, keeping the cloud unit the clearest gauge of AI-driven demand.
TechmemeAI score 61Microsoft's first quarter of fiscal 2027 brought revenue of $92.28B, up 19% year over year, with a 67.79% gross margin and net income of $36.63B, up 32%. IT之家 notes that Azure's growth accelerated and that revenue, operating income and EPS all beat consensus.
IT之家AI score 57Bloomberg Technology reports that Microsoft posted quarterly cloud revenue above analyst estimates, suggesting the company is still reaping the benefits of its large AI investments. The report does not specify the size of the beat.
Bloomberg TechnologyAI score 56
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