Loading...
•
Sep 30, 2025
Microsoft Q1 2026 Earnings Report
Microsoft reported strong first quarter results driven by cloud and AI services.
Key Takeaways
Microsoft delivered a strong start to FY26 with $77.7B in revenue, led by a 26% increase in Microsoft Cloud and significant growth in Azure services. Net income rose to $27.7B, and adjusted EPS reached $4.13.
Revenue reached $77.7B, up from $65.6B YoY.
Net income rose to $27.7B, with operating income at $38.0B.
Microsoft Cloud revenue jumped 26% to $49.1B.
Azure and other cloud services revenue increased by 40% YoY.
Revenue by Segment
Forward Guidance
Microsoft provided forward-looking commentary on its earnings call, highlighting strong demand for cloud and AI solutions.
Positive Outlook
- Strong growth in Microsoft Cloud and Azure.
- Broad AI adoption driving demand for Copilot solutions.
- Commercial RPO rose 51% YoY.
- Productivity segment continues to grow.
- Investments in AI talent and infrastructure expected to continue.
Challenges Ahead
- Investments in OpenAI caused a $3.1B GAAP adjustment.
- Xbox revenue growth was flat.
- Consumer hardware growth remains modest.
- Possible macroeconomic uncertainties.
- No specific quantitative forward guidance provided.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...