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Azure grows 48% as Microsoft's contracted backlog reaches $677 billion

Microsoft reported revenue of $92.3 billion for its fiscal first quarter, up 19%, on Wednesday. Azure revenue was $33.2 billion, up 48%, and Microsoft Cloud reached $63.9 billion. Commercial remaining performance obligation, the contracted revenue not yet booked, rose 73% to $677 billion.

Additions to property and equipment were $39.4 billion, against $19.4 billion a year earlier; the release does not give a separate figure for finance leases. Microsoft's stake in OpenAI produced a $207 million gain, compared with a loss of about $3.1 billion a year ago. Investing.com reported the shares up about 2.5% after hours, beating estimates of $90.61 billion in revenue and $4.72 in adjusted earnings per share.

Set beside Alphabet the same afternoon, the comparison investors drew was cash: Microsoft grew Azure at nearly half again its size and still produced positive free cash flow. SourcesAB

Sources

• AMicrosoft FY27 Q1 press releasemicrosoft.com
• BMicrosoft stock up after hours as Azure strength drives FQ1 beat (Investing.com)investing.com

This story ran in the Morning Brief of October 28th 2026.