Microsoft Revenue Hits Record $92.3 Billion for 10th Straight Quarter
Microsoft posts a 10th straight quarterly revenue record at $92.3 billion as cloud and AI surge, while capital spending reaches $45.2 billion, a new high.
Summary
Microsoft reported on October 28, 2026, that quarterly revenue reached a record $92.3 billion, up 19% from a year earlier, extending its record streak to 10 quarters. GAAP net income climbed 32% to $36.6 billion. Microsoft Cloud drove the result with $63.9 billion, up 30%. Under Microsoft’s new structure, Agents and Infra sits alongside Devices and Consumer, whose revenue fell 3% to $15.5 billion as Windows OEM and devices dropped 22%.
Microsoft 365 generated nearly $28 billion and Azure led with $33.2 billion, although traditional software and SaaS workloads mean not all cloud revenue was AI-related. Microsoft reported $10 billion in revenue from OpenAI, which still runs many services on Azure despite expanding to AWS, Oracle and others; Anthropic also uses Azure. Commercial remaining performance obligations rose 73% to $677 billion, representing future revenue committed through existing AI lab contracts. Preparing to fulfill those commitments pushed quarterly capital expenditure to a record $45.2 billion.
Positives
- $92.3 billion in quarterly revenue, up 19%, extended Microsoft’s record-breaking streak to 10 consecutive quarters.
- $36.6 billion in GAAP net income represented 32% year-over-year growth.
- $63.9 billion in Microsoft Cloud revenue marked a 30% annual increase.
- $33.2 billion from Azure exceeded Microsoft 365’s nearly $28 billion contribution.
- $677 billion in commercial remaining performance obligations rose 73%, signaling substantial contracted future revenue.
- $10 billion in reported OpenAI revenue strengthened Microsoft’s AI and cloud business.
Risks & concerns
- $15.5 billion in Devices and Consumer revenue represented a 3% year-over-year decline.
- 22% lower Windows OEM and devices revenue exposed continued weakness in Microsoft’s consumer hardware business.
- $45.2 billion in quarterly capital expenditure set a record as Microsoft prepared to meet its cloud commitments.
- OpenAI is expanding to AWS, Oracle and other providers despite continuing to run many services on Azure.
- Not all Azure and Microsoft 365 revenue is AI-related because customers also run traditional software and SaaS workloads.