Microsoft reports $92.3 billion in quarterly revenue as cloud business expands

Microsoft reported revenue of $92.3 billion on October 28, 2026, for the quarter ended September 30, up 19% from a year earlier. Its fiscal first-quarter results showed continued expansion in cloud services as the company invested heavily in artificial intelligence infrastructure, according to its earnings announcement.

Net income reached $36.6 billion, a 32% increase under generally accepted accounting principles, or GAAP. Operating income rose 21% to $45.9 billion. Microsoft also presented adjusted results excluding the impact of its OpenAI investments: on that basis, net income was $36.4 billion, up 18%, and diluted earnings per share were $4.89. The distinction matters because the reported and adjusted profit growth rates were substantially different.

Microsoft Cloud revenue reached $63.9 billion, an increase of 30%, according to the company. BBC News independently reported the overall revenue, net income and cloud growth figures, describing cloud computing as a driver of the quarter's performance. The results cover the three months through September, not Microsoft's full fiscal year.

The revenue gains came alongside substantial spending. Reuters reported capital expenditure of $45.2 billion for the quarter, compared with $34.9 billion a year earlier. That was below Microsoft's own $50 billion projection. Jonathan Neilson, the company's vice president of investor relations, attributed the shortfall to delayed third-party capacity deliveries rather than a change in underlying spending plans. Reuters also reported $18.6 billion in quarterly free cash flow.

What to watch

• Microsoft set a fiscal second-quarter revenue outlook of $96 billion to $97.1 billion, according to Reuters; those figures are company guidance, not completed sales.
• The company said the capacity deliveries delayed from the first quarter did not alter its underlying spending plans, making their completion a stated operational follow-up.