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Microsoft Q1 2027 Earnings Call Transcript

Reviewed by ClearTape · Source: Benzinga

Key takeaways

Microsoft’s FY27 Q1 shows a strong cloud‑driven revenue surge, solid earnings, and an upbeat outlook for Azure and AI services, but Windows OEM lag and high CapEx temper the near‑term upside.
Revenue $92.3 billion (19%
YoY
Year over year — compared with the same period last year.
)
Operating income $22.4 billion (24%
YoY
Year over year — compared with the same period last year.
)
EPS
Earnings per share — profit for one share of the company, in dollars.
Learn more →
$4.89 (18%
YoY
Year over year — compared with the same period last year.
)

What happened

Microsoft (NASDAQ: MSFT) reported first‑quarter FY27 results with revenue of $92.3 billion, up 19%

YoY

Year over year — compared with the same period last year.

, driven by a 30% jump in Microsoft Cloud revenue. Operating income rose 24% to $22.4 billion, and earnings per share were $4.89, up 18%. The company guided Q2 revenue to $96–$97.1 billion, with Azure growth of 49%–50% in constant currency. Capital expenditures were $5.2 billion and free cash flow was $18.6 billion.

Why it matters

The results show Microsoft’s cloud business is expanding faster than its core Windows and device segments, reinforcing its shift to subscription‑based services. The strong

guidance

What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.

for Azure and Copilot adoption signals continued demand for AI‑powered productivity tools, which could lift long‑term margins. The…

Short-term and longer-term

Short-term. Over the next few days, watch for the Q2 earnings release to see if the

guidance

What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.

holds.

Longer-term. For the coming months, the focus will be on how Microsoft’s AI and cloud investments translate into sustainable margin expansion.

Words on this card

CapEx: Capital expenditures, the money a company spends on long‑term assets like data centers
EPS Learn: Earnings per share, the portion of a company’s profit allocated to each share of stock
Azure: Microsoft’s cloud computing platform
Copilot: An AI‑powered assistant that helps users write code, create documents, and perform tasks
M365: Microsoft 365, a suite of productivity apps and services
M365 Commercial Cloud: Microsoft 365 services sold to businesses

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