Microsoft (MSFT) revenue in the first quarter of fiscal year 2027 increased by 18.8% y/y to 92.28 billion USD, and net income increased by 32.0% y/y to 36.63 billion USD.

Quarterly results#

Operating income was 45.91 billion USD, representing a 20.9% y/y increase compared to 37.96 billion USD the previous year. Earnings per share (GAAP) reached 4.92 USD (+32.3% y/y), while earnings per share (GAAP, diluted) was 4.93 USD (+32.2% y/y).

What management says#

Management emphasized that it strives for maximum efficiency and interchangeability of the entire infrastructure, with capacity being allocated according to demand signals. According to management, engineering teams are regularly improving efficiency at the platform level. Management indicated that the key way to maintain margin is revenue growth. According to management, with every new AI model, the Copilot subscription is intended to deliver increasing value to customers. Management noted that although the transition to consumption-based billing outside of programming will take more time, encouraging signals are visible. Management also emphasized that the company has great flexibility in securing financing on attractive terms.