Microsoft posted $92.3 billion in revenue and, for the first time, disclosed Azure's dollar figure: $33.2 billion, up 48% from a year ago.
Microsoft reported $92.3 billion in revenue for the quarter ended Sept. 30, up 19% from a year earlier, in results released on Wednesday, Oct. 28, 2026. The company also put a dollar figure on Azure for the first time: $33.2 billion, up 48%. Microsoft had never broken that number out in dollars before.
What Microsoft reported
According to Microsoft's earnings release, net income was $36.6 billion, up 32% on a GAAP basis. Microsoft Cloud brought in $63.9 billion, with growth speeding up to 30%.
TechCrunch reports that Azure was about $850 million above the $32.3 billion analysts expected, and that its 48% growth beat the 44% to 45% range CFO Amy Hood had guided to in July. The Verge notes Microsoft now reports two segments: Agents and Infra ($76.8 billion, up 25%) and Devices and Consumer ($15.5 billion, down 3%).
The OpenAI and spending numbers
TechCrunch says a regulatory filing shows $10 billion of the quarter's revenue came from commercial arrangements with OpenAI, close to 11% of the total. Capital spending hit a record $45.2 billion, according to TechCrunch, and Microsoft's commercial remaining performance obligation, which is revenue already committed under contracts, rose 73% to $677 billion.
Where Microsoft is weaker
The Verge reports that Windows OEM and devices revenue fell 22%, which Microsoft tied to last year's Windows 10 end-of-support boost and a softer PC market. Hood said she expects another Windows OEM decline next quarter, around the mid-30s in percentage terms. On the gaming side, Xbox hardware revenue dropped 14%, Xbox content and services slipped 2%, and total Xbox revenue was down 2%.
What is not settled yet
Microsoft has not said how much of the $10 billion from OpenAI is revenue sharing and how much is Azure usage. TechCrunch says it has asked. Amazon reports earnings on Thursday, and Amazon Web Services is still the largest cloud business, so the first real side-by-side of dollar figures is coming within a day. TechCrunch puts Google Cloud, which Alphabet also reported Wednesday, at $30.7 billion.
Why it matters for U.S. readers
Microsoft runs the software many U.S. offices live in, so a 10th straight record quarter moves markets and budgets. The weak PC and Xbox numbers hit closer to home: if you are shopping for a Windows laptop or console this holiday season, the company itself is warning about soft demand.
Our take: the Azure disclosure is the real story. Microsoft was happy to let investors guess at the number while it was small relative to rivals. Now that it is $33.2 billion and growing at 48%, it wants the comparison. The catch is that Azure also carries a lot of AI spending, and a $45.2 billion quarterly capital bill says the company expects that demand to last.
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Picture credit: Photo: Microsoft. Design: Savvy VibeZ
