Microsoft reports September 2026 quarter revenue of $92.3 billion, up 19%
Microsoft reported revenue of $92.3 billion for the quarter ended September 30, 2026, up 19% year over year, with operating income of $45.9 billion, up 21% (22% in constant currency). GAAP net income rose 32% to $36.6 billion and GAAP diluted EPS rose 32% to $4.92; excluding the impact of OpenAI investments, non-GAAP net income was $36.4 billion and non-GAAP diluted EPS was $4.89, each up 18%. Microsoft Cloud revenue increased 30% to $63.9 billion, Azure revenue increased 48% to $33,165 million, and commercial r...
Key takeaways
Revenue: Revenue was $92.3 billion for the quarter ended September 30, 2026, up 19% year over year, and operating income was $45.9 billion, up 21% (up 22% in constant currency).
Earnings: GAAP net income rose 32% to $36.6 billion and GAAP diluted EPS rose 32% to $4.92; non-GAAP net income was $36.4 billion (up 18%) and non-GAAP diluted EPS was $4.89 (up 18%).
OpenAI impact: OpenAI investments increased GAAP net income by $207 million and GAAP diluted EPS by $0.03 in the quarter, versus net losses that reduced prior-year net income by $3.1 billion and diluted EPS by $0.41.
Cloud: Microsoft Cloud revenue was $63.9 billion, up 30% (up 31% in constant currency); Azure revenue rose 48% to $33,165 million; commercial remaining performance obligation increased 73% to $677 billion.
Segments: Agents and Infra revenue was $76,795 million, up 25%, with segment operating income of $40,558 million; Devices and Consumer revenue was $15,484 million, down 3%, with segment operating income of $5,357 million.
Product trends: Microsoft 365 commercial cloud revenue grew 17% as reported (18% adjusted) and consumer cloud revenue grew 17%, while Windows OEM and devices revenue fell 22% and XBOX content and services revenue fell 2%.
Cash flow and capital spending: Net cash from operations was $58,000 million and additions to property and equipment were $39,367 million.
Key metrics
Disclosure changes
- Segment presentation
Microsoft reports two segments, Agents and Infra and Devices and Consumer, and states that prior-period segment amounts were recast to conform to the way it internally manages and monitors its business, reflecting the fiscal year 2027 segment changes announced in September 2026. Recast prior-year quarterly revenue was $61,672 million for Agents and Infra and $16,001 million for Devices and Consumer.
Prior-period segment revenue, operating income, and growth rates reflect the new fiscal year 2027 segment structure rather than the prior reported segment presentation. - Non-GAAP measures for OpenAI investments
Microsoft presents non-GAAP results that adjust for the impact of investments in OpenAI, with the current quarter's adjustment reducing GAAP net income by $207 million and GAAP diluted EPS by $0.03, and the prior-year quarter's adjustment increasing adjusted net income by $3,086 million and adjusted diluted EPS by $0.41.
GAAP and non-GAAP net income and diluted EPS growth rates differ materially because the non-GAAP measure removes the OpenAI investment impact.
Primary source
TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.
Open SEC filingFollow MSFT in real time
Get material earnings, filing, IR, and earnings-call alerts by email.