Microsoft Azure growth tops expectations
Microsoft (NASDAQ: MSFT) released its fiscal first-quarter 2027 results. Revenue increased 19% year over year to $92.28 billion, exceeding the $90.62 billion consensus. GAAP net income rose 32% to $36.63 billion, while diluted GAAP EPS reached $4.92. Adjusted EPS excluding the impact of OpenAI investments was $4.89, beating analysts' approximately $4.72 estimate.
Azure revenue grew 48%, while Microsoft Cloud revenue climbed 30% to $63.9 billion. Commercial remaining performance obligations increased 73% to $677 billion. A $207 million net gain from OpenAI investments added $0.03 to GAAP EPS, explaining the difference from adjusted results.
| Metric | Actual | Consensus |
|---|---|---|
| Revenue | $92.28 billion (+19%) | $90.62 billion |
| GAAP net income | $36.63 billion (+32%) | — |
| GAAP EPS | $4.92 | — |
| Adjusted EPS | $4.89 | Approx. $4.72 |
| Operating income | $45.92 billion (+21%) | — |
| Microsoft Cloud revenue | $63.9 billion (+30%) | — |
| Azure revenue growth | +48% | — |
| Commercial remaining performance obligations | $677 billion (+73%) | — |
| Forward guidance | To be provided on earnings call | — |
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