Microsoft reveals strong cloud growth amid financial reporting overhaul

Microsoft's first quarter of its 2027 fiscal results revealed strong cloud growth. The company reported $92.3 billion in revenue, with a net income of $33.6 billion. Revenue increased by 19 percent, and net income rose by 32 percent. Microsoft is now reporting finances by splitting its businesses into two segments: Agents and Infra, which includes Azure, Microsoft 365 commercial and consumer, and server products; and Devices and Consumer, which includes Windows, Xbox, Surface, and search and advertising businesses.

Agents and Infra made up 83 percent of Microsoft's revenue, with Azure alone contributing $33.17 billion in revenue, a 48 percent increase year-over-year. Devices and Consumer revenue decreased by three percent. Windows OEM and devices revenue decreased 22 percent year-over-year, suffering from the RAMageddon crisis and the end of Windows 10 support.

Xbox hardware revenue declined 14 percent, while Xbox content and services revenue decreased 2 percent. Despite these challenges, Microsoft's cloud revenues led the earnings show, contributing $63.9 billion or almost 70 percent of the company's revenue. Azure revenue grew 30 percent year-over-year, Microsoft 365 commercial cloud revenue increased 18 percent, and Microsoft 365 consumer cloud revenue grew 17 percent. Microsoft will hold an earnings call at 2:30PM PT / 5:30PM ET to discuss these results.