Business · Companies · 14 mins ago
Microsoft beats expectations as revenue rises nearly 20%
Microsoft started its fiscal year with results above expectations, the company said Wednesday after US markets closed.
Revenue rose nearly 20% to $92.3 billion, while profit climbed 32% to 36.6 billion.
The company is based in Redmond, Washington, and its Azure cloud platform was a key driver of growth.
Microsoft also spent less on investments than analysts had expected, helping reassure investors.
Its shares rose about 4% in after-hours trading after the results were announced.
If the stock rose by a similar amount on Thursday, it could pass its previous record high, set in summer 2025.
Microsoft reported quarterly revenue of $92.3 billion, up 19% from a year earlier and above analysts’ expectations.
Azure revenue rose 48% to about $33.2 billion, driven by strong demand for cloud and AI services.
Net income increased 32% to $36.6 billion, while revenue, operating income and earnings per share exceeded the company’s expectations.
Microsoft shares rose after hours following the results.
The company forecast revenue of $96 billion to $97.1 billion for the October-December quarter.
- Who
- Microsoft.
- What
- The company reported quarterly revenue of $92.3 billion, up 19% year over year, and Azure revenue growth of 48%.
- When
- The results were announced on October 28, 2026, for the July-September quarter.
- Where
- Redmond, Washington, according to Handelsblatt.
- Why
- Strong growth in Azure and demand for cloud and AI services contributed to the results.
This story does not have two clearly opposing sides.
Microsoft’s reported quarter saw revenue rise 19% year over year and Azure revenue rise 48%.
Microsoft announced its quarterly results after the US market closed.
Microsoft shares were up 4% at $552 compared with the regular-session closing price.
Microsoft projected revenue of $96 billion to $97.1 billion and Azure growth of 49% to 50%, excluding currency effects.
- Quarterly revenue
- $92.3 billion, up 19% year over year
- Azure revenue
- $33.2 billion, up 48% year over year
- Net income
- $36.6 billion, up 32% year over year
- Agents and Infra revenue
- $76.8 billion, up 25% year over year
- After-hours share price
- $552, up 4% about 45 minutes after the announcement
15 sources
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What people are saying
We have made a good start to fiscal year 2026/2027.
The business figures exceeded expectations for revenue as well as operating income and net income.
The figures are as flawless as they can be for a company of this size.