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Microsoft surges on cloud and artificial intelligence

Revenue rose 19 per cent to 92.3 billion dollars in the first quarter of the new financial year.

Microsoft generated revenue of 92.3 billion dollars in the first quarter of its 2027 financial year. Cloud revenue grew by 30 per cent and Azure revenue rose by 48 per cent. According to Microsoft, the figures reflect strong demand for computing power and AI services.

Microsoft published the results on Wednesday for the quarter ending 30 September. Revenue was 19 per cent higher than a year earlier. Operating profit came to 45.9 billion dollars, while net profit rose to 36.6 billion dollars.

Revenue from Microsoft Cloud amounted to 63.9 billion dollars, an increase of 30 per cent. Within that total, Azure grew by 48 per cent. Microsoft does not give a separate figure for revenue directly attributable to artificial-intelligence services, but it does link the growth to broader demand for cloud capacity and AI infrastructure.

A large share of future revenue has also already been secured. Commercial remaining contract value rose by 73 per cent to 677 billion dollars. That figure represents contracts Microsoft has concluded but still has to deliver and convert into revenue. It is not profit and does not guarantee that all future expectations will remain unchanged.

The results come against the backdrop of major investments in data centres, chips and energy. Microsoft is trying to enable companies to use AI functionality within Azure, Microsoft 365 and other services. At the same time, the company says customers should gain more control over costs, security and the use of AI agents.

For Dutch companies using Microsoft's cloud software and digital infrastructure, the figures may be relevant. Growth at Azure could point to further demand for data-centre capacity, software development and specialised IT services. For customers, however, strong demand does not automatically mean that applications will become cheaper or more productive; that depends on usage, contract terms and the cost of computing power.

Microsoft returned 10.2 billion dollars to shareholders during the quarter through dividends and share buybacks. The figures also include a positive effect of 207 million dollars from investments in OpenAI. Microsoft therefore publishes adjusted figures alongside the ordinary figures, excluding that effect. According to Microsoft, net profit growth remains substantial after this adjustment, but is lower than the reported growth.

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