Microsoft announces first quarter results
Azure growth and positive free cash flow accompanied continued investment in AI infrastructure.
TL;DR
- Microsoft reported fiscal Q1 2027 revenue of $92.3 billion, up 19%.
- Azure revenue grew 48% and Microsoft Cloud revenue rose 30%.
- The company forecast continued Azure growth, but that outlook is not a result.
Microsoft reported fiscal Q1 2027 revenue of $92.3 billion, an increase of 19% from a year earlier. Net income on a GAAP basis rose 32% to $36.6 billion. [1]
Microsoft Cloud revenue rose 30% to $63.9 billion, while Azure revenue increased 48%. Chief financial officer Amy Hood said the company’s cloud growth accelerated year over year. [1] [2]
Reuters reported that free cash flow was $18.6 billion and that capital spending came in below the company’s own forecast. The figures describe the reported quarter rather than a guarantee of future cash generation. [2]
Microsoft forecast Azure growth of 49% to 50% for the following fiscal quarter, according to Reuters. Actual growth and the return on AI infrastructure spending remain to be seen. [2]
Why it matters
The quarter offers a concrete view of how cloud sales and cash flow are developing alongside AI infrastructure spending.
Editor's note
Quarterly results are company-reported; free cash flow and subsequent guidance are reported by Reuters. Guidance is conditional.