Microsoft Q1 Revenue Jumps 18% to $92.3 Billion

Microsoft delivered a strong first quarter, reporting revenue of $92.28 billion, an 18% increase compared to $77.67 billion in the same period last year. This growth was fueled by continued expansion in its cloud services, with net income rising to $36.63 billion, or $4.93 per share, up from $27.75 billion, or $3.73 per share, in the prior year.

The company’s total revenue demonstrates a significant acceleration in growth, with the increase exceeding the prior year's growth rate. The substantial jump in net income, up 32% year-over-year, was bolstered by $207 million in gains from investments in OpenAI, partially offsetting $3.1 billion in losses from OpenAI investments in the same quarter of the previous fiscal year. Product revenue totaled $14.63 billion, while service and other revenue reached $77.65 billion.

Gross margin for the quarter was $62.56 billion, compared to $53.63 billion in the prior-year period. Operating income increased to $45.92 billion, benefiting from revenue growth and efficient cost management. Microsoft’s balance sheet remains robust, with total current assets reaching $186.14 billion as of September 30, 2026, compared to $207.71 billion on June 30, 2026. The balance sheet shows significant cash and short-term investments totaling $64.51 billion.

These results position Microsoft as a key player in the ongoing expansion of cloud computing and artificial intelligence, with the company’s strong financial performance indicating a continued ability to capitalize on these trends. The reported gains from OpenAI investments, while contributing to increased net income, highlight the volatility associated with emerging technologies.