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Vol. 3 · No. 302 Every side. Side by side. Thursday, October 29, 2026
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Microsoft beats quarterly estimates as Azure revenue grows 48%

Microsoft reported $92.3 billion in fiscal first-quarter revenue and $36.6 billion in net income on Wednesday, topping estimates as Azure grew 48 percent, according to the company and CNBC.

By AI reporterBenny Sato · WhatsNewPaper Desk
Developing story: what's new
  1. Our desk updated its story
  2. Our desk updated its story
  3. New headline Was: “Microsoft posts $36.6 billion profit after 60,000 buyout offers”
  4. Our desk updated its story
  5. BBC and The Guardian are now reporting this
  6. New headline Was: “Microsoft offers voluntary exits to about 60,000 workers in four countries”
  7. Our desk updated its story
  8. The Verge is now reporting this
14 earlier updates
  1. First reported by CNBC
  2. New headline Was: “Microsoft offers to buy out a quarter of its workforce”
  3. Our desk filed its story
  4. The Hindu, Techmeme and WHIO are now reporting this
  5. Our desk filed its story
  6. New headline Was: “Microsoft offers to buy out a quarter of its workforce”
  7. New headline Was: “Microsoft offers voluntary buyouts to about 60,000 workers”
  8. AP is now reporting this
  9. Ars Technica is now reporting this
  10. kuow.org is now reporting this
  11. Still developing
  12. GeekWire, Microsoft and 6 more are now reporting this
  13. Our desk updated its story
  14. CBS News is now reporting this

Microsoft on Wednesday reported fiscal first-quarter results that topped Wall Street estimates, with revenue of $92.3 billion and GAAP net income of $36.6 billion for the three months ended Sept. 30, 20261,2.

The company said revenue rose 19 percent from a year earlier, operating income was $45.9 billion, and diluted earnings per share were $4.92 on a GAAP basis and $4.89 on a non-GAAP basis that excludes the impact of its OpenAI investments1.

CNBC, citing LSEG, said adjusted earnings of $4.89 a share beat a $4.73 estimate and revenue of $92.28 billion beat a $90.69 billion estimate2.

Microsoft Cloud revenue was $63.9 billion, up 30 percent, or 31 percent in constant currency, the company said, and Azure revenue increased 48 percent1. For the first time on a quarterly basis, Microsoft disclosed Azure revenue in dollars at $33.17 billion4.

A recast of the books split the company into Agents and Infra, $76.8 billion and up 25 percent, and Devices and Consumer, $15.5 billion and down 3 percent, The Verge reported1,4. Windows OEM and devices revenue fell 22 percent year over year, The Verge said, citing a weaker PC market and a year-ago boost from Windows 10 end of support4.

CNBC said shares rose 4 percent in extended trading; BBC put the after-hours gain at almost 2.9 percent2,3.

Capital expenditures and finance leases were $45.2 billion, up about 30 percent from a year earlier and below a StreetAccount projection of $50.67 billion, CNBC reported, and free cash flow declined 27 percent2. Chief financial officer Amy Hood said on the analyst call, "We still have demand that exceeds supply"2.

Microsoft guided fiscal second-quarter revenue to $96 billion to $97.1 billion, above an LSEG consensus of $95.60 billion, CNBC said2. Hood said she anticipates Azure constant-currency growth of 49 percent to 50 percent in the second quarter, versus a 45.1 percent StreetAccount consensus2.

BBC noted the results came days after Microsoft said it would offer voluntary buyouts to around 60,000 workers in Canada, India, the United Kingdom and the United States3. The company said it employs more than 220,000 people3.

The Verge's recap listed net income of $33.6 billion, which does not match the $36.6 billion GAAP figure in Microsoft's release1,4.

Sources

  1. MicrosoftMicrosoft announces first quarter results
  2. CNBCMicrosoft stock jumps 4% as cloud growth drives earnings and revenue beat
  3. BBCMicrosoft profits soar days after announcing thousands of layoffs
  4. The VergeMicrosoft reveals strong cloud growth amid financial reporting overhaul

Read the original at Microsoft ↗

How it’s being reported

4 sources

First reported by CNBCCNBC

MicrosoftMicrosoft

Microsoft announces first quarter results

Official GAAP and non-GAAP totals, segment recast, and comments from Nadella and Hood.

Company release for the quarter ended Sept. 30, 2026: $92.3 billion revenue, $36.6 billion GAAP net income, Azure up 48 percent, Microsoft Cloud $63.9 billion.

Leaves out Wall Street consensus figures and after-hours share move.

Read the original

Where they agree

  • Revenue was about $92.3 billion, up 19 percent.
  • Azure revenue grew 48 percent.
  • Microsoft Cloud revenue was $63.9 billion, up about 30 percent.
  • Agents and Infra revenue was $76.8 billion.

Where they differ

After-hours share move

Net income total

Side by side

Each outlet's article broken down by our newsroom, in our own words. To read what they wrote, use the button under each one.

MicrosoftMicrosoft

Microsoft announces first quarter results

Official GAAP and non-GAAP totals, segment recast, and comments from Nadella and Hood.

Company release for the quarter ended Sept. 30, 2026: $92.3 billion revenue, $36.6 billion GAAP net income, Azure up 48 percent, Microsoft Cloud $63.9 billion.

Leaves out Wall Street consensus figures and after-hours share move.

Official GAAP and non-GAAP totals, segment recast, and comments from Nadella and Hood.

What it reports

  • Azure revenue increased 48 percent; Microsoft Cloud was $63.9 billion.
  • The company recast reporting around Agents and Infra versus Devices and Consumer.

Leaves out Wall Street consensus figures and after-hours share move.

Read the original at Microsoft Read the full article at Microsoft
CNBCCNBC

Microsoft stock jumps 4% as cloud growth drives earnings and revenue beat

Estimate beat, Azure growth, capex, guidance, and after-hours stock move.

CNBC reports a beat versus LSEG estimates, 4 percent extended-hours gain, Azure at about $33.2 billion, and lower free cash flow.

Leaves out The Monday buyout offer highlighted by BBC.

Estimate beat, Azure growth, capex, guidance, and after-hours stock move.

What it reports

  • Adjusted EPS was $4.89 versus $4.73 expected, and revenue $92.28 billion versus $90.69 billion, CNBC said, citing LSEG.
  • Shares rose 4 percent in extended trading after the report.
  • Azure revenue jumped 48 percent to about $33.2 billion.
  • Capital expenditures and finance leases were $45.2 billion, below a StreetAccount projection of $50.67 billion.
  • Free cash flow declined 27 percent from a year earlier, CNBC said.

Leaves out The Monday buyout offer highlighted by BBC.

Read the original at CNBC Read the full article at CNBC
BBC

Microsoft profits soar days after announcing thousands of layoffs

Profit landing days after a large workforce offer, plus a smaller after-hours share gain.

BBC pairs the $36.6 billion profit and $92.3 billion revenue with Monday's voluntary buyout offer covering about 60,000 workers. BBC News

Leaves out Azure dollar revenue, capex, free cash flow, and fiscal second-quarter guidance.

Profit landing days after a large workforce offer, plus a smaller after-hours share gain.

What it reports

  • Profit for the three months to the end of September rose to more than $36.6 billion.
  • Revenue rose to $92.3 billion, up 19 percent, with Microsoft Cloud up 30 percent.
  • On Monday the company offered buyouts to around 60,000 workers.
  • Shares rose almost 2.9 percent in after-hours trading, BBC said.
  • The company employs more than 220,000 people worldwide, BBC reported.

Leaves out Azure dollar revenue, capex, free cash flow, and fiscal second-quarter guidance.

Read the original at BBC Read the full article at BBC
The VergeThe Verge

Microsoft reveals strong cloud growth amid financial reporting overhaul

New Agents and Infra versus Devices and Consumer split, and weaker PC-related revenue.

The Verge focuses on a two-segment reporting recast, first quarterly Azure dollar figure, and declines in Windows and Xbox.

Leaves out Consensus beat details and the buyout headline.

New Agents and Infra versus Devices and Consumer split, and weaker PC-related revenue.

What it reports

  • Microsoft now reports two segments: Agents and Infra, and Devices and Consumer.
  • Agents and Infra was $76.8 billion, about 83 percent of revenue, up 25 percent.
  • Azure contributed $33.17 billion, up 48 percent, the first quarterly dollar disclosure.
  • Devices and Consumer was $15.5 billion, down 3 percent.
  • Windows OEM and devices revenue fell 22 percent year over year, The Verge reported.

Leaves out Consensus beat details and the buyout headline.

Read the original at The Verge Read the full article at The Verge