GoKawiilMicrosoft reports Q1 FY2027 revenue of $92.3 billion, splits reporting into two segments
Microsoft posted first-quarter fiscal 2027 revenue of $92.3 billion, up 19 percent, with net income of $33.6 billion, up 32 percent. The company restructured its financial reporting into two new segments, Agents and Infra and Devices and Consumer, replacing its prior three-segment structure, and will now disclose Azure revenue quarterly. Azure brought in $33.17 billion, up 48 percent year-over-year, while Devices and Consumer revenue fell 3 percent, with Windows OEM revenue down 22 percent amid a weak PC market.
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The new segment breakdown gives outside observers a clearer, more frequent view of Azure's standalone performance, which could sharpen comparisons with rivals like Amazon and Google in cloud computing. Microsoft's framing of its business around 'Agents and Infra' suggests the company is positioning AI and cloud infrastructure as its core growth engine rather than traditional productivity software. The steep decline in Windows OEM revenue, which Microsoft attributes partly to memory shortages and a shrinking PC market, points to continued pressure on its legacy hardware-linked businesses.
- Microsoft's Q1 FY2027 revenue hit $92.3 billion, up 19 percent year-over-year, with net income up 32 percent to $33.6 billion.
- Microsoft replaced its three traditional reporting segments with two: Agents and Infra, and Devices and Consumer, and will now report Azure revenue quarterly.
- Azure revenue grew 48 percent to $33.17 billion, while Devices and Consumer revenue fell 3 percent amid a 22 percent drop in Windows OEM revenue.
Microsoft Surface Laptop — With Microsoft's cloud and devices business both posting strong growth, the Surface Laptop remains the flagship showcase for Windows and Microsoft 365 integration. It's a great way to experience Microsoft's ecosystem firsthand, from Copilot features to seamless cloud syncing with OneDrive and Azure-backed services.
See Microsoft Surface Laptop on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: theverge.com — Tom Warren, 2026-10-28
Published there as: “Microsoft reveals strong cloud growth amid financial reporting overhaul”
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