MSFT · 10-Q · 2026Q3 · Full report

Revenue Performance and Mix

MICROSOFT CORP · 2026-10-28 · Importance 54 · Surprise 40 · In source text

For the three months ended September 30, 2026, revenue increased 19% to $92.279 billion, driven by Agents and Infra revenue growth of 25% to $76.795 billion; Devices and Consumer revenue fell 3% to $15.484 billion. Azure revenue rose 48%, or $10.8 billion, while Microsoft 365 cloud revenue increased 17%, or $4.1 billion, and Industry solutions cloud revenue grew 10%. In Devices and Consumer, Search and advertising revenue excluding traffic acquisition costs increased 12%, while XBOX content and services fell 2% and Windows OEM and devices revenue declined 22%.

Key facts

• Microsoft Cloud revenue increased 30% to $63.9 billion in Q1 FY2027 versus Q1 FY2026. source
• Microsoft revenue increased $14.6 billion, or 19%, in Q1 FY2027, driven by Agents and Infra growth; Devices and Consumer revenue decreased, driven by Windows OEM and devices, partly offset by Search and advertising growth. source
• Microsoft's Agents and Infra revenue increased $15.1 billion, or 25%, in Q1 FY2027. source
• Microsoft operating income increased $8.0 billion, or 21%, in Q1 FY2027, driven by Agents and Infra growth. source
• Microsoft 365 consumer cloud revenue increased 17% in Q1 FY2027 versus Q1 FY2026. source
• Microsoft announced changes to its segment reporting structure in September 2026, creating Agents and Infra and Devices and Consumer segments. source
• Beginning in FY2027, Microsoft's CODM reviews resource allocation and performance using the revised segment information, and prior-period segment information was recast. source
• Microsoft updated Azure, Microsoft 365 commercial cloud, and Search and advertising growth metrics in Q1 FY2027 to reflect movement of certain components, and created the Industry solutions cloud growth metric. source

Impact estimates