Microsoft (MSFT) Earnings: Q1 Fiscal 2027 Results and Next Report Date
Last updated November 2026
Short answer
Microsoft reported revenue of $92.3 billion for Q1 fiscal 2027, up 19% from a year earlier (Microsoft, Oct 28, 2026). Diluted EPS was $4.92, up 32% from $3.72. Agents and Infra brought in $76,795 million, up 25%. Microsoft next reports around January 27, 2027 (an estimated date). Every figure is from Microsoft's release. Walnut is informational, not investment advice.
MSFT Q1 fiscal 2027 results
In one sentence
Microsoft reported revenue of $92.3 billion for Q1 fiscal 2027, up 19% from a year earlier (Microsoft, Oct 28, 2026).
| Measure | Q1 fiscal 2027 | Q1 fiscal 2026 | Change |
|---|---|---|---|
| Revenue | $92,279 million | $77,673 million | up 19% |
| Diluted EPS (GAAP) | $4.92 | $3.72 | up 32% |
| Diluted EPS (non-GAAP) | $4.89 | $4.13 | up 18% |
The quarter ended September 30, 2026 and Microsoft published the results on October 28, 2026. Revenue and diluted EPS are shown against Q1 fiscal 2026, the same quarter a year earlier, which takes seasonal swings out of the comparison. Microsoft reports EPS two ways: GAAP, under the accounting rules every US filer follows, and non-GAAP, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.
- Microsoft's non-GAAP figures exclude the impact from its investments in OpenAI.
- The two segments are new for fiscal 2027, announced in September 2026; Microsoft recast the prior-year amounts to match.
Source: Microsoft Q1 fiscal 2027 results, October 28, 2026. Also in the Form 8-K, Exhibit 99.1. Figures as reported; checked against the release on November 8, 2026.
MSFT revenue by segment
How Microsoft splits revenue in its own release, under its own labels, for Q1 fiscal 2027 against Q1 fiscal 2026. Indented lines are parts of the line above them.
| Revenue by segment | Q1 fiscal 2027 | Q1 fiscal 2026 | Change |
|---|---|---|---|
| Agents and Infra | $76,795 million | $61,672 million | up 25% |
| Devices and Consumer | $15,484 million | $16,001 million | down 3% |
- Microsoft's Agents and Infra revenue was $76.8 billion in Q1 fiscal 2027, up 25% from $61.7 billion in Q1 fiscal 2026, 83% of total revenue.
- Microsoft's Devices and Consumer revenue was $15.5 billion in Q1 fiscal 2027, down 3% from $16.0 billion in Q1 fiscal 2026, 17% of total revenue.
Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.
Microsoft's outlook for Q2 fiscal 2027
From the earnings call
Microsoft's results release contains no outlook. It gives one on the earnings call and publishes the transcript on its investor relations site.
On the Q1 fiscal 2027 earnings call, Amy Hood, EVP and CFO said:
“Therefore, at the total company level, revenue should be between $96 and $97.1 billion or growth of 18 to 19%.”
“We expect revenue from Agents and Infra of $80.1 to $80.7 billion, or growth of 24 to 25%.”
“In Azure, we expect revenue growth of 49 to 50% in constant currency with continued efficiency gains across our CPU and GPU fleet helping to offset some 3P GPU as a service contracts that have been delayed to H2.”
“In devices and consumer, we expect revenue to be $15.9 to $16.4 billion.”
“Microsoft Cloud gross margin percentage should be roughly 65%, down year-over-year as continued improvement in product-level margins is more than offset by sales mix shift to Azure.”
“We expect COGS of $32.7 to $32.9 billion, or growth of 26 to 27%. And operating expense of $18.5 to $18.6 billion or growth of 9% driven by continued investment in R&D compute capacity and talent.”
“And we expect our Q2 effective tax rate to be approximately 20%.”
“In Q2, we expect CapEx spend will be over $50 billion.”
Source: Microsoft FY27 Q1 earnings call transcript (Microsoft Investor Relations), Oct 28, 2026.
This is the company's own guidance as of Oct 28, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the MSFT forecast page.
When does MSFT report earnings next?
Microsoft's next report is expected around January 27, 2027, a date estimated from its reporting history that the company has not yet confirmed. This page will show Q1 fiscal 2027 until those results are out and have been checked against the release.
Past Microsoft quarterly reports
Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.
- Q1 fiscal 2027 (this page), reported Oct 28, 2026
What Microsoft's revenue is made of
From fiscal 2027 Microsoft reports two segments. Agents and Infra brings together Azure (consumption-based compute, data, storage, networking and security, plus GPU infrastructure and Foundry), Microsoft 365 cloud including Copilot and GitHub Copilot, and server and productivity licensing. Devices and Consumer holds search and advertising (Bing, Edge, LinkedIn Marketing Solutions), XBOX, and Windows OEM licenses and Microsoft's own devices. (Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026)
In Q1 fiscal 2027 Agents and Infra brought in $76,795 million and Devices and Consumer $15,484 million. The single largest product line was Azure at $33,165 million, against $22,384 million a year earlier, followed by Microsoft 365 cloud at $27,778 million. (Microsoft Q1 FY27 release, Oct 28, 2026)
Microsoft Cloud gross margin percentage fell to 66%, which Microsoft attributed to the sales mix shifting toward Azure, offset in part by product-level margin improvements, mainly in Azure. (Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026)
What Microsoft's EPS includes
Microsoft's non-GAAP EPS excludes one thing: net gains and losses from its investments in OpenAI. In Q1 fiscal 2027 those were a net gain that added $0.03 to diluted EPS; a year earlier they were a net loss that took off $0.41. That is why GAAP EPS rose 32% to $4.92 while non-GAAP EPS rose 18% to $4.89. (Microsoft Q1 FY27 release, Oct 28, 2026; Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026)
Microsoft repurchased 6 million shares for $2,925 million in the quarter, against 8 million for $3,955 million a year earlier. Diluted weighted average shares were 7,446 million, against 7,466 million. (Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026; Microsoft Q1 FY27 release, Oct 28, 2026)
Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.
Consensus and guidance at Microsoft
Microsoft does not put guidance in its release; the release says it will provide forward-looking guidance on the earnings call. On the call its CFO gives dollar ranges for total revenue and for each segment, growth ranges for Azure and the other product lines, and figures for cost of revenue, operating expense, the tax rate and capital expenditure. (Microsoft Q1 FY27 release, Oct 28, 2026; Microsoft FY27 Q1 earnings call transcript (Microsoft Investor Relations), Oct 28, 2026)
The forward indicator in the filing is commercial remaining performance obligation: contracted revenue not yet recognized, which includes unearned revenue and amounts to be invoiced and recognized in future periods. It rose 73% to $677 billion. (Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026; Microsoft Q1 FY27 release, Oct 28, 2026)
On November 2, 2026, the Yahoo Finance consensus for the December 2026 quarter was EPS of $4.86 (23 analysts) and revenue of $96,702 million (34 analysts). (Yahoo Finance consensus, Nov 2, 2026)
A consensus figure is the average of the models published by the analysts who cover Microsoft, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.
The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.
The numbers analysts watch at Microsoft
The figures below are the ones Microsoft's own release and filings put weight on for Q1 fiscal 2027, with the latest reported value for each.
| Metric | Latest reported |
|---|---|
| Azure revenue growth | 48% year over year Microsoft Q1 FY27 release, Oct 28, 2026 |
| Microsoft Cloud revenue | $63.9 billion, up 30% (31% in constant currency) Microsoft Q1 FY27 release, Oct 28, 2026 |
| Microsoft Cloud gross margin | 66% Microsoft Form 10-Q, Q1 FY27, Oct 28, 2026 |
| Commercial remaining performance obligation | $677 billion, up 73% Microsoft Q1 FY27 release, Oct 28, 2026 |
| Windows OEM and devices revenue | Down 22% Microsoft Q1 FY27 release, Oct 28, 2026 |
What the quarter means for a holding is a separate question from what it reported. The case for and against owning MSFT is on is MSFT a buy or a sell?, what analysts expect next is on the MSFT forecast, and what the company does is on the Microsoft (MSFT) stock page.
How to check MSFT's figures yourself
Every number on this page can be traced to a document Microsoft published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.
- The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
- The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
- The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
- Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.
A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.
Your questions about Microsoft
Ask Walnut's AI anything about MSFT and see how it fits what you own.
FAQ
What was Microsoft's revenue last quarter?
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Microsoft reported revenue of $92,279 million for Q1 fiscal 2027, the quarter ended September 30, 2026, against $77,673 million in Q1 fiscal 2026 (up 19%). The figures come from Microsoft's results release of October 28, 2026.
What guidance did Microsoft give for Q2 fiscal 2027?
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Microsoft's results release contains no outlook. It gives one on the earnings call and publishes the transcript on its investor relations site. On the Q1 fiscal 2027 earnings call, Amy Hood, EVP and CFO said: "Therefore, at the total company level, revenue should be between $96 and $97.1 billion or growth of 18 to 19%. We expect revenue from Agents and Infra of $80.1 to $80.7 billion, or growth of 24 to 25%. In Azure, we expect revenue growth of 49 to 50% in constant currency with continued efficiency gains across our CPU and GPU fleet helping to offset some 3P GPU as a service contracts that have been delayed to H2. In devices and consumer, we expect revenue to be $15.9 to $16.4 billion. Microsoft Cloud gross margin percentage should be roughly 65%, down year-over-year as continued improvement in product-level margins is more than offset by sales mix shift to Azure. We expect COGS of $32.7 to $32.9 billion, or growth of 26 to 27%. And operating expense of $18.5 to $18.6 billion or growth of 9% driven by continued investment in R&D compute capacity and talent. And we expect our Q2 effective tax rate to be approximately 20%. In Q2, we expect CapEx spend will be over $50 billion." That is the company's own outlook as of Oct 28, 2026, and companies revise outlooks as the quarter goes on.
When does MSFT report earnings next?
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Microsoft's next report is expected around January 27, 2027, a date estimated from its reporting history that the company has not confirmed. This page carries Q1 fiscal 2027 until those results are out and checked against the release.
Where does Microsoft's revenue come from?
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Microsoft's Agents and Infra revenue was $76.8 billion in Q1 fiscal 2027, up 25% from $61.7 billion in Q1 fiscal 2026, 83% of total revenue. Microsoft's Devices and Consumer revenue was $15.5 billion in Q1 fiscal 2027, down 3% from $16.0 billion in Q1 fiscal 2026, 17% of total revenue. These are the lines of Microsoft's own "revenue by segment" table for Q1 fiscal 2027.
How much did Microsoft's revenue grow last quarter?
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Up 19% on the year: $92,279 million in Q1 fiscal 2027 against $77,673 million in Q1 fiscal 2026. That is the year-over-year comparison, the same quarter a year apart, so seasonal patterns in Microsoft's business do not distort it.
What is the difference between Microsoft's GAAP and non-GAAP EPS?
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GAAP EPS follows US accounting rules and is the figure in the audited statements. Microsoft's non-GAAP EPS starts from it and removes items the company considers outside its operating results; the release lists each adjustment in a reconciliation table. For Q1 fiscal 2027 the two were $4.92 and $4.89. Analysts' EPS estimates are usually built on the adjusted figure, so check which one a headline compares before you repeat it.
Why is Microsoft's quarter called Q1 fiscal 2027?
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Microsoft's fiscal year does not follow the calendar year, so Q1 fiscal 2027 is the quarter that ended September 30, 2026. When you compare MSFT with a company that reports on the calendar year, line quarters up by the date they ended, not by their names.
Where do the MSFT numbers on this page come from?
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From Microsoft's own results release and its Form 8-K, Exhibit 99.1, copied as printed, in millions of US dollars. Percent changes are worked out from those figures and rounded to a whole percent, which matches how the release states them. Nothing on this page is an estimate except the consensus, which is labelled with its source and date.
Walnut is informational, not investment advice. Reported figures are copied from Microsoft's results release and filings; consensus figures, where shown, are third-party estimates captured before the report. Verify figures against the source before relying on them.
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