Microsoft reported a 19% growth in its revenue to $92.3 billion for the fiscal quarter ending September 30, 2026. This revenue increase was driven by strong growth in the company's cloud services sector and the start of the 2027 fiscal year with higher revenue and profits.
Strong Financial Performance of Microsoft
Microsoft's revenue in this quarter increased compared to last year, which was $77.7 billion. Operating income rose by 21% to $45.9 billion, while net income also grew by 32% to reach $36.6 billion.
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Satya Nadella, CEO of Microsoft, highlighted the impressive performance of the company's cloud services in a statement, saying: "Microsoft's revenue from cloud services reached over $63 billion, and its growth has accelerated to 30% compared to last year."
Future Forecasts and High Customer Demand
Microsoft's cloud services revenue in this quarter reached $63.9 billion, reflecting a 30% increase compared to last year. Additionally, Azure's revenue, with a growth of 48%, has been recognized as one of the main factors behind the company's success.
Expectations for the next quarter are also high. Microsoft anticipates revenue between $96 billion and $97.1 billion in the December quarter, indicating an 18% to 19% growth. Azure's revenue growth is also expected to reach 49% to 50% in constant currency.
Amy Hood, Executive Vice President and CFO of Microsoft, stated that customer demand continues to exceed existing supply, and improvements in the company's computing infrastructure help it better meet demand.
In the September quarter, Microsoft's capital expenditures reached $45.2 billion, and expenses are expected to exceed $50 billion in the December quarter. Additionally, capital expenditures for the calendar year 2026 are projected to be nearly $170 billion.
Despite this growth, Microsoft's devices and consumer segment faced a 3% decline in revenue to $15.5 billion. Revenue from Windows and devices decreased by 22%, while revenue from Xbox content and services also dropped by 2%.
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