Microsoft Posts 10th Consecutive Quarterly Revenue Record at $92.3 Billion
Microsoft Cloud drove the quarter with $63.9B in revenue, up 30%, including $33.2B from Azure. OpenAI generated $10B in revenue for Microsoft, while capital expenditures hit a quarterly-record $45.2B and future contracted revenue surged 73% to $677B.
Microsoft reported its tenth consecutive quarter of record-breaking revenue on October 28, 2026, posting $92.3 billion for the period — a 19% increase over the same quarter a year earlier.
Net income also reached a record $36.6 billion, up 32% on a GAAP basis year-over-year, making the results profitable as well as historically large.
The primary driver was Microsoft Cloud, which generated $63.9 billion in revenue, a 30% increase over the year-ago quarter. Within that figure, Azure contributed the most at $33.2 billion, while Microsoft 365 accounted for nearly $28 billion. Microsoft has reorganized its business reporting into two segments: Agents and Infra, and Devices and Consumer. The Devices and Consumer segment posted $15.5 billion in revenue, a 3% decline, with Windows OEM and devices revenue falling 22% year-over-year.
AI-related activity contributed meaningfully to the results. Microsoft reported $10 billion in revenue from OpenAI, which continues to run a significant portion of its services on Microsoft’s cloud despite also using AWS and Oracle. AI lab Anthropic also runs on Azure. Microsoft’s commercial remaining performance obligation — representing future revenue committed under existing contracts — grew 73% to $677 billion, suggesting substantial AI-driven commitments ahead.
To support that future demand, Microsoft’s capital expenditures reached $45.2 billion for the quarter, itself an all-time quarterly record.
The results underscore how cloud infrastructure and AI workloads are currently sustaining Microsoft’s growth, even as its traditional devices and Windows business contracts. Whether that trajectory continues may depend on how enterprise AI adoption evolves — but for now, Microsoft’s financials reflect sustained and accelerating demand.