Microsoft revenue rises 19% to $92.3 billion as Azure grows 48%; shares slip on Thursday
Microsoft beat analysts' forecasts for its fiscal first quarter, with Azure revenue of $33.2 billion. Capital spending including finance leases rose about 30% to $45.2 billion and free cash flow fell 27%. The shares were down about 1% in Thursday trading.
Microsoft reported revenue of $92.3 billion for the quarter to 30 September, the first quarter of its 2027 financial year, up 19% from a year earlier, the company said after the US market close on Wednesday 28 October. Analysts had expected $90.69 billion, according to LSEG estimates cited by CNBC.
Net income rose 32% to $36.6 billion, or $4.92 per share. Excluding the effect of its investments in OpenAI, earnings were $4.89 per share, against the $4.73 analysts had forecast, CNBC reported.
Azure revenue grew 48%. Microsoft disclosed the figure in dollars for the first time, at $33.17 billion, CNBC reported. Microsoft Cloud revenue was $63.9 billion, up 30%, and commercial remaining performance obligations rose 73% to $677 billion, the company said. Revenue in the Devices and Consumer segment fell 3% to $15.5 billion, with Windows OEM and devices revenue down 22%.
Capital expenditure including finance leases was $45.2 billion, up about 30%, and free cash flow fell 27% to $18.63 billion, according to CNBC. Finance chief Amy Hood said the company expected Azure growth of 49% to 50% at constant currency in the current quarter. “We still have demand that exceeds supply,” she said.
The shares rose about 4% in extended trading on Wednesday. As of 17:54 GMT on Thursday they were down 1.1% at $525.34, according to Yahoo Finance data.
See also: Alphabet’s third-quarter results.
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