Microsoft (NASDAQ: MSFT) shares rose 4.0% in premarket trading on Thursday after fiscal first-quarter 2027 revenue and earnings beat Wall Street expectations, driven by growth in its Azure cloud business. For the quarter ended September 30, 2026, revenue rose 19% to $92.3 billion and GAAP diluted EPS climbed 32% to $4.92. Azure revenue grew 48% year over year to $33.2 billion, above the previous guidance of about 44% to 45% and analyst forecasts, and Microsoft projected Azure growth of 49% to 50% for the December quarter. Commercial backlog reached $677 billion, up 73%. Barclays raised its price target to $610 from $600 and kept its Overweight rating, while CEO Satya Nadella said daily Copilot users rose 50% from a year earlier.
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MSFT
▲ Likely positiveMicrosoft
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
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Microsoft reported first quarter 2027 revenue of $92.3 billion, up 19%, with Microsoft Cloud revenue reaching $63.9 billion (up 30%) and Azure growing 48%. Non-GAAP EPS was $4.89, up 18%, and cash flow from operations rose 29% to $58 billion. Commercial remaining performance obligation reached $677 billion, up 73%, while capital expenditures totaled $45.2 billion, with 75% allocated to short-lived assets such as CPUs and GPUs for AI infrastructure. Management said demand for AI services still exceeds available supply and projected second-quarter revenue of $96 billion to $97.1 billion and capex of over $50 billion. Windows OEM revenue fell 27% due to partner inventory drawdowns and weaker PC demand, and some third-party capacity deliveries were delayed.
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