Microsoft on October 28, 2026 reported fiscal year 2027 first-quarter results for the period ended September 30, 2026, and for the first time published Azure revenue in dollars: $33.165 billion, up 48% year over year. The figure sits in the company's Product and Service Offerings table; media often round it to $33.2 billion. That disclosure lets investors compare Azure directly with other public cloud lines that already report dollar revenue each quarter.
Key Facts
| Metric | FY27 Q1 (ended Sep 30, 2026) |
|---|---|
| Total revenue | $92.3 billion (+19% YoY) |
| GAAP net income | $36.6 billion (+32% YoY) |
| Diluted EPS (GAAP) | $4.92 (+32% YoY) |
| Microsoft Cloud | $63.9 billion (+30%; +31% constant currency) |
| Azure revenue | $33.165 billion (+48% YoY; +48% constant currency) |
| Agents and Infra segment | $76.8 billion (+25% YoY) |
| Commercial remaining performance obligation | $677 billion (+73% YoY) |
CFO Amy Hood said the company delivered "a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year," and that results "exceeded expectations across revenue, operating income, and earnings per share."
Background
Microsoft had typically disclosed Azure as a growth percentage rather than a quarterly dollar amount. FY27 Q1 also reflects a segment redesign announced in September 2026: Agents and Infra now groups Azure with Microsoft 365 cloud and related infrastructure businesses, while Devices and Consumer is the other reported segment. Prior-period amounts were recast to match.
TechCrunch, citing the same release and the July earnings call, wrote that Azure beat the roughly $32.3 billion analysts expected by about $850 million, and that the 48% growth rate topped Hood's prior forecast of 44–45%. The outlet also noted that Alphabet, reporting the same day, put Google Cloud at $30.7 billion for the July–September quarter (Google Cloud includes Workspace; Alphabet's earnings release lists Google Cloud at $30.709 billion, +103% YoY).
Reactions and Impact
Publishing Azure in dollars closes a long-standing gap versus Amazon Web Services and Google Cloud, which already report cloud revenue in dollars. Azure accounted for roughly 36% of Microsoft's $92.3 billion quarterly revenue on the company's own Product and Service Offerings figures. Amazon Web Services earnings for the same calendar quarter were still pending at the time of TechCrunch's report.
What We Don't Know Yet
- How Microsoft will present Azure dollar revenue in future quarters (whether this becomes a standing disclosure)
- Full AWS dollar comparison for the same July–September window until Amazon reports
- How much of Azure growth is attributable to AI infrastructure versus other workloads (the press release does not break that out)