MSFT — Q1 2026 Earnings Call
TechnologyMicrosoft Corporation • Reported: 2025-10-28
EPS Actual
$3.68
Est. $3.55
▲ Beat
Revenue Actual
$74.5B
Est. $73.1B
▲ Beat
Overall Result
Double Beat
EPS + Revenue vs. estimates
Period
Q1 2026
FY2026 • Reported 2025-10-28
Executive Summary
Microsoft reported Q1 FY2026 revenue of $74.5 billion, up 16% YoY, beating expectations. Azure grew 40% as AI workloads continued to scale. GitHub Copilot surpassed 5 million paid subscribers. The company raised guidance for the full fiscal year.
Key Highlights
Cloud
positive
Azure grows 40%
Azure revenue grew 40%, with AI now contributing 21 points of growth.
GitHub
positive
GitHub Copilot 5M subscribers
GitHub Copilot surpassed 5 million paid subscribers, becoming the largest AI developer tool.
Revenue
positive
Revenue beats by $1.4B
Q1 revenue of $74.5B beat consensus by $1.4B, growing 16% YoY.
Guidance
positive
Full-year guidance raised
Microsoft raised FY2026 guidance, citing accelerating AI adoption across all segments.
Direct Quotes
SN
Satya Nadella
CEO • AI Adoption
"Every customer I talk to is focused on using AI to drive real business outcomes. Azure AI is becoming the platform of choice for enterprise AI transformation."
AH
Amy Hood
CFO • Financial Results
"Revenue grew 16% to $74.5 billion with strong demand across cloud and AI services."