Microsoft earnings report

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Microsoft reported strong results for the first quarter of fiscal year 2026, ended September 30, 2025, with growth driven by its cloud and artificial intelligence businesses. Revenue reached $77.7 billion, up 18% from the same quarter last year, while operating income rose 24% to $38 billion. Net income totaled $27.7 billion, an increase of 12% on a GAAP basis and 22% on a non-GAAP basis, with diluted earnings per share of $3.72, up 13%. The company returned $10.7 billion to shareholders through dividends and share repurchases.

Microsoft noted that losses related to its investment in OpenAI had a significant effect on GAAP results, reducing net income by $3.1 billion and earnings per share by $0.41, compared with a smaller $523 million impact a year earlier.

The company's three major business segments all contributed to growth. The Intelligent Cloud division delivered $30.9 billion in revenue, up 28%, with Azure and other cloud services growing 40%. The Productivity and Business Processes segment, which includes Microsoft 365, Dynamics 365, and LinkedIn, reported $33 billion in revenue, a 17% increase year over year. More Personal Computing, which covers Windows, devices, and gaming, generated $13.8 billion, up 4%, with gains in Windows OEM, advertising, and a modest rise in Xbox content and services.



Operating cash flow for the quarter was a robust $45.1 billion, compared with $34.2 billion a year earlier. Microsoft also continued to invest heavily in infrastructure to support its AI and cloud strategy, with $19.4 billion in capital expenditures and $17.7 billion spent on investment purchases.

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