Microsoft Discloses Azure Revenue in Dollars for First Time: $33.2 Billion, Up 48%

Microsoft reported fiscal first-quarter 2027 revenue of $92.28 billion on Wednesday, up 19% from a year earlier, and for the first time disclosed Azure revenue in dollar terms: about $33.2 billion, growth of roughly 48%, SiliconANGLE reported.

Results

• Revenue: $92.28 billion versus about $90.69 billion expected by analysts.
• Adjusted EPS: $4.89 versus a $4.73 forecast.
• Net income: $36.63 billion, up from $27.75 billion a year earlier.
• Agents and Infra segment: $76.8 billion, up 25%; Azure is part of this segment.
• Devices and Consumer: $15.48 billion, down 3%, with Windows and devices licensing sales down 22%.
• Capital spending: $45.2 billion including finance leases, up about 30%. About 75% went to short-lived assets such as chips and servers, up from 66%.
• Free cash flow: $18.63 billion, down 27%.

Guidance and commentary

For the fiscal second quarter, Microsoft guided to revenue of $96 billion to $97.1 billion and Azure growth of 49% to 50% in constant currency. SiliconANGLE put analyst expectations at about $95.6 billion and 45.1%.

CFO Amy Hood said, "We still have demand that exceeds supply." CEO Satya Nadella said higher memory and storage costs have pushed up device prices and slowed PC sales. Microsoft said Microsoft 365 Copilot users rose 50% from the prior quarter and that its Microsoft 365 E7 bundle has reached millions of seats, according to SiliconANGLE. The company did not disclose the number of paid Copilot seats.

Shares rose about 4% in after-hours trading.

Why it matters

Until now Microsoft reported Azure only as a growth percentage. The new dollar figure puts its cloud business more directly alongside rivals; Alphabet reported Google Cloud revenue of $30.7 billion for its own third quarter the same day. The 22% drop in Windows-related device sales also points to how component costs are affecting the PC market.