MSFT · 10-Q · 2026Q3 · Full report

OpenAI Investment Gains

MICROSOFT CORP · 2026-10-28 · Importance 45 · Surprise 64

Microsoft reported $272 million of net gains from investments in OpenAI in the quarter ended September 30, 2026, compared with $4.1 billion of net losses in the prior-year quarter. The current-quarter gains increased net income by $207 million and diluted earnings per share by $0.03, net of tax. Prior-year OpenAI investment losses reduced net income by $3.1 billion and diluted earnings per share by $0.41. Adjusted net income, which excludes OpenAI investment gains and losses, increased 18% to $36.422 billion.

Key facts

• Microsoft's Q1 FY2027 net income and diluted EPS increased by $207 million and $0.03, respectively, due to net gains from OpenAI investments; prior-year net income and diluted EPS decreased by $3.1 billion and $0.41, respectively, due to net losses from those investments. source
• Microsoft is a major investor in OpenAI and will continue to receive revenue-sharing payments. source
• Microsoft holds rights to OpenAI intellectual property, including models and infrastructure, for integration into its products. source
• Microsoft has had a long-term strategic partnership with OpenAI since it was originally established in 2019. source