Microsoft Posts $92.3 Billion Revenue as Azure Grows 48%

Microsoft reported revenue of $92.3 billion for the first quarter of its 2027 fiscal year, up 19 percent from the same period a year earlier, according to figures reviewed by The Verge. Net income rose 32 percent to $33.6 billion over the same span, the outlet reported. The quarter also marked the first time Microsoft presented its results under a new two-segment reporting structure, replacing the three-way breakdown the company had used in prior years.

What did Microsoft report for fiscal Q1 2027?

The headline figures were revenue of $92.3 billion and net income of $33.6 billion, representing year-over-year increases of 19 percent and 32 percent, respectively, per the Verge's review of the disclosure. Those totals cover Microsoft's full business, spanning cloud infrastructure, productivity software, Windows, Xbox, Surface hardware, and the company's search and advertising operations.

Why is Microsoft changing its reporting segments?

Microsoft retired its longstanding three-segment format — Productivity and Business Processes, Intelligent Cloud, and More Personal Computing — and replaced it with two new categories: Agents and Infra, and Devices and Consumer, The Verge reported. The change took effect with the start of Microsoft's new fiscal year. Agents and Infra groups Azure, Microsoft 365 commercial and consumer subscriptions, and server products together, while Devices and Consumer covers Windows, Xbox, Surface, and the company's search and advertising businesses. The restructuring means the segment-level comparisons analysts used in prior years no longer line up directly with the new categories, a shift that will complicate quarter-over-quarter trend-spotting until Microsoft has published several quarters under the new format.

How fast is Azure growing under the new disclosure rules?

One practical effect of the overhaul is that Microsoft will now disclose Azure revenue as a standalone quarterly figure rather than folding it into a broader cloud category, according to the Verge report. For the quarter, Azure contributed $33.17 billion in revenue, up 48 percent year-over-year. Agents and Infra as a whole — the segment that houses Azure — generated $76.8 billion, or 83 percent of total company revenue, and grew 25 percent year-over-year, per the same disclosure. The gap between Azure's 48 percent growth rate and the broader segment's 25 percent rate suggests Azure is expanding faster than the rest of the cloud and productivity businesses bundled with it, though Microsoft's reporting does not break out the growth rates of the other components inside Agents and Infra.

What happened to Windows and Xbox revenue?

The Devices and Consumer segment told a different story. Windows and Xbox revenues declined during the quarter, The Verge reported, even as the company's cloud-driven segment expanded sharply. The Verge's coverage did not include a specific dollar figure or percentage decline for Devices and Consumer as a whole, only that revenue in the Windows and Xbox lines fell.

What is still uncertain about the new reporting format?

The method matters here as much as the numbers. Because Microsoft redefined its segments rather than simply renaming them, direct comparisons to prior-year Intelligent Cloud or More Personal Computing figures are not straightforward — a limitation inherent to any company restating how it buckets revenue. The Verge's report does not specify whether Microsoft has restated prior-year quarters under the new Agents and Infra/Devices and Consumer framework, which would be necessary for apples-to-apples historical analysis. Until Microsoft publishes additional quarters under the new structure, it will be difficult to isolate how much of the quarter's growth reflects underlying business performance versus the effect of reclassifying which products sit in which bucket.

Microsoft Q1 2027 figures at a glance

• Total revenue: $92.3 billion, up 19% year-over-year
• Net income: $33.6 billion, up 32% year-over-year
• Agents and Infra segment: $76.8 billion (83% of total revenue), up 25% year-over-year
• Azure (disclosed standalone for the first time): $33.17 billion, up 48% year-over-year
• Devices and Consumer segment: includes Windows, Xbox, Surface, search and advertising; Windows and Xbox revenue declined, per The Verge

The quarterly figures come from Microsoft's own disclosure as reported by The Verge, and no additional financial detail beyond what the outlet published was available for this report.