MSFT

Review|MSFT FY27Q1: Azure Grows 48%; Copilot Revenue Growth Accelerates

Mo·October 30, 2026 at 2:15 AM UTC

Azure demand still tops supply, while Copilot adoption and revenue acceleration support upside into FY27H2.

Azure growth was broadly in line with our forecast, while Copilot revenue growth accelerated. Better CPU and GPU fleet efficiency supported revenue, while delayed third-party capacity deliveries shifted capex into later periods. We are watching how large Copilot deployments translate into revenue and the timing of capacity deliveries in FY27H2.

Results at a glance

  1. Revenue was $92.28b, up 19% y/y and 0.9% above the $91.46b in our Preview.
  2. Azure revenue was $33.17b, up 48% y/y in constant currency, close to the 47.1% in our Preview.
  3. M365 Commercial Cloud grew 18% in constant currency as reported, broadly in line with the ~18% in our Preview; adjusting for prior-year revenue recognition effects, like-for-like growth was 19%. M365 commercial paid seats grew 5%.
  4. EPS excluding the OpenAI investment impact was $4.89, close to the $4.82 in our Preview.

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