Stock

# Microsoft (MSFT)

Microsoft grew revenue 19% and Azure 48% in its September quarter, and said demand still exceeds supply while some outside capacity arrives late.

Updated Oct 29, 2026

Information and analysis only, not a recommendation to buy, sell or hold any security. The author may own securities discussed.

Researched and drafted with AI agents. Every figure is taken from a source cited on the page.

Analysis and information

## What it does

Microsoft offers the Azure cloud, Microsoft 365 and Copilot workplace software, Windows, LinkedIn, GitHub and Xbox. From fiscal 2027 it reports two segments: Agents and Infra, and Devices and Consumer. Its fiscal year ends on June 30.

## Role in the theme

In **Platforms and software**, Microsoft rents AI computing through Azure and spends heavily on data centers, including capacity contracted from outside providers.

## Latest

- **2026-10-28:** Revenue for the quarter to September rose 19% to $92.3 billion. Operating income rose 21% to $45.9 billion.
- **2026-10-28:** Azure revenue grew 48%. Microsoft Cloud revenue rose 30% to $63.9 billion. Commercial remaining performance obligation was $677 billion, up 73%.
- **2026-10-28:** Agents and Infra revenue rose 25% to $76.8 billion. Devices and Consumer revenue fell 3% to $15.5 billion.
- **2026-10-28, on the earnings call:** the CFO put capital spending, including finance leases, at $45.2 billion and said "some third-party capacity deliveries we expected in Q1 were delayed" (call transcript; the results release reports cash additions to property and equipment of $39.4 billion).
- **2026-10-28:** For the December quarter, Microsoft guided Azure growth of 49-50% in constant currency. It said this helps offset some third-party GPU-as-a-Service contracts delayed to the second half of the fiscal year.
- **2026-10-28:** The CFO expects capital spending of over $50 billion in the December quarter and about $170 billion for the calendar year. "Customer demand continues to exceed available supply," she said.

## What to watch

- When the delayed third-party GPU contracts start. Microsoft's fiscal second half runs from January to June 2027.
- Azure growth against the 49-50% guidance.
- Capital spending against the guidance of over $50 billion for the December quarter.
- Next report: fiscal Q2 2027 results, date not confirmed.

## Covered in

- Theme: [Platforms and software](/research/themes/platforms-software)

## Sources

Primary means the publisher of the data or the filing; secondary means press or an aggregator.
- [Microsoft FY27 Q1 results](https://www.microsoft.com/en-us/investor/earnings/fy-2027-q1/press-release-webcast)Primary 2026-10-28
- [Microsoft FY27 Q1 earnings call transcript](https://www.fool.com/earnings/call-transcripts/2026/10/29/microsoft-msft-q1-2027-earnings-call-transcript/)Secondary 2026-10-29
[All research](/research)[All signals](/signals)[Back to today's read](/)