Microsoft 8-K

Summary

Q1 FY2027 results. Growth was led by Microsoft’s cloud and infrastructure businesses, while Devices and Consumer revenue declined. The company’s GAAP earnings comparison also reflects a swing in gains and losses from OpenAI investments; its non-GAAP results exclude those effects.

Key Figures

• Agents and Infra revenue rose 25% to $76.8B; Microsoft Cloud revenue grew 30% to $63.9B, Azure revenue grew 48%, and commercial remaining performance obligation increased 73% to $677B. Microsoft 365 commercial cloud revenue grew 17% as reported and 18% in constant currency; Devices and Consumer revenue fell 3%, including a 22% decline in Windows OEM and Devices.
• OpenAI investment results contributed a $207M net gain to Q1 FY2027 net income, versus a $3.1B net loss in Q1 FY2026; non-GAAP results exclude these impacts.
• Capital expenditures were $39.4B, versus $19.4B a year earlier. Microsoft returned $10.2B through dividends and repurchases, including $4.38B of repurchases versus $5.65B a year earlier; shares outstanding were 7.427B at quarter-end, unchanged from 6/30/2026. Cash, cash equivalents and short-term investments totaled $64.5B, down from $76.8B at 6/30/2026.

Guidance

Guidance to be given on the earnings call.

Investor Takeaways

• Watch the earnings-call outlook and subsequent Azure and Microsoft Cloud growth: sustaining Q1’s 48% and 30% Y/Y growth rates, respectively, would support the cloud-led growth story; deceleration would weaken it.