Key Highlights

  • Under GAAP, Microsoft (NASDAQ:MSFT) generated USD 36.6 billion of Net Income in the quarter ended September 30, 2026, a 32% increase. Revenue reached USD 92.3 billion, up 19%, and Diluted Earnings per Share hit USD 4.92.
  • Azure climbed 48%, Microsoft Cloud sales came to USD 63.9 billion, up 30%, and the commercial backlog, the value of signed contracts not yet recognized as revenue, rose 73% to USD 677 billion.
  • Operating income reached USD 45.9 billion, up 21%. Adjusted net income, which strips out the OpenAI effect, was USD 36.4 billion, an 18% rise, because that Investment had added USD 207 million to GAAP profit.
  • Screen data place MSFT at USD 507.12 after a 2.83% fall in the latest session, showing trailing net income of USD 133.75 billion and an earnings multiple of 26.48. Those screener numbers have not been verified.

A Quarter Powered by Cloud Demand

Microsoft reported fiscal 2027 first-quarter numbers on October 28, 2026. Revenue hit USD 92.3 billion, up 19%, and the Agents and Infra segment brought in USD 76.8 billion, up 25%. Inside that segment, Azure rose 48% while Microsoft 365 commercial cloud climbed 17%. Operating profit, at USD 45.9 billion, grew 21%, so earnings expanded faster than sales. Such leverage, with expenses climbing more gently than sales, is the reason GAAP net income jumped 32% to USD 36.6 billion. Microsoft (NASDAQ:MSFT) also handed USD 10.2 billion back to shareholders through dividends and Buybacks during the period.

Why Net Income Serves as the Benchmark

Net income is the residual once operating expenses, interest and taxes are deducted, so it reflects the earnings left for owners of the stock. Rankings of the biggest earners use a rolling four-quarter sum, which explains why Microsoft (NASDAQ:MSFT) lands high on those lists at USD 133.75 billion per screener data, a number we have not matched to filings. GAAP and adjusted profit differ only slightly here. The adjusted figure of USD 36.4 billion strips out gains and losses tied to the OpenAI investment, which contributed USD 207 million and USD 0.03 per share to the GAAP result.

Risks and Items to Watch

Not every segment is expanding. Devices and Consumer sales of USD 15.5 billion slipped 3%, while the Windows OEM and Devices line fell 22%. Converting the USD 677 billion Backlog into sales depends on Microsoft bringing capacity online, so data centre supply, power access and customer timing all matter. Profit also hinges on how the OpenAI stake is accounted for, which can swing reported earnings either way. On screener figures the earnings multiple is 26.48, so MSFT already embeds high expectations. Another earnings release typically arrives around late January, though we have not checked that date.

Where Things Stand

Profit reached USD 36.6 billion for the September 2026 quarter as cloud sales accelerated and costs rose at a slower pace, lifting Operating Income to USD 45.9 billion. Those earnings are solid, which places the company near the top of US earners. Shares dropped 2.83% in the latest session according to screener figures, showing that size offers no shield against declines. Investors will next watch whether Azure can keep expanding near 48% while the backlog turns into sales.