Microsoft Quarterly Revenue Hits KRW 124 Trillion on AI, Cloud Growth; Azure Up 48%

Microsoft (MS) reported quarterly results that exceeded market expectations, driven by growth in its artificial intelligence (AI) and cloud businesses.

Reuters-Yonhap

According to results released by Microsoft on Wednesday (local time), revenue for the first quarter of fiscal 2027 (July-September) rose 19% year over year to $92.28 billion. That topped the Wall Street consensus estimate of $90.69 billion, compiled by market research firm London Stock Exchange Group (LSEG).

Earnings per share (EPS) also surpassed the market estimate of $4.73, coming in at $4.92. Adjusted EPS, excluding a $207 million valuation gain related to Microsoft's investment in OpenAI, was $4.89.

The cloud business drove the results. Revenue from Microsoft's cloud segment rose 30% year over year to $63.9 billion. In particular, revenue from Azure, its core cloud platform, surged 48%. The commercial bookings backlog, which is expected to translate into future revenue, also grew 73% year over year to $677 billion.

Cloud revenue from Microsoft 365 (M365), Microsoft's productivity software service, rose 17% for both commercial and consumer customers. Revenue for the agents and infrastructure segment, which includes the cloud business, increased 25% to $76.8 billion.

By contrast, revenue from the devices and consumer segment fell 3% year over year to $15.5 billion. Search and advertising revenue rose 12%, but revenue from Xbox content and services and from Windows and devices declined 2% and 22%, respectively.

Spending on expanding AI infrastructure also increased. Microsoft's capital expenditures for the quarter totaled $45.2 billion (about KRW 61 trillion), up approximately 30% from $34.9 billion in the same period last year. However, the figure fell short of the company's previously issued forecast of $50 billion. Microsoft CEO Satya Nadella said the company's technology is giving customers greater choice and cost efficiency, adding that these innovations are being adopted across industries and delivering tangible results.

This content was produced with the assistance of AI translation services.