Azure revenue disclosed on its own for the first time
Microsoft said its Azure cloud business brought in $33.2 billion in the September quarter, up 48% from a year earlier and ahead of both the company's own forecast and Wall Street expectations. Azure revenue rose $10.8 billion year over year.
The company disclosed the figure as revenue, not just growth, for the first time. The change is part of a new financial structure that took effect this quarter, splitting Microsoft into two segments: Agents and Infra, and Devices and Consumer.
The bigger picture
Microsoft's total revenue rose 19% to $92.3 billion in the first quarter of its 2027 fiscal year. Earnings were $4.89 per share excluding the impact of its OpenAI investment. Shares rose nearly 4% in after-hours trading.
- Agents and Infra (Azure, Microsoft 365, Dynamics, LinkedIn tools and licensing): Revenue up 25% to $76.8 billion; operating income up 24% to $40.6 billion.
- Devices and Consumer (Windows, Xbox, search and advertising): Revenue down 3% to $15.5 billion; operating income up 2% to $5.4 billion.
Spending turns into sales
Capital spending came in at $45.2 billion, below the more than $50 billion the company had expected. Microsoft said some data center capacity that third parties were supposed to deliver in the quarter was delayed. Even so, Azure's growth signals that the company's record infrastructure buildout is starting to translate into revenue.
