Key Highlights

  • Microsoft (NASDAQ:MSFT) reported GAAP Net Income of USD 36.6 billion for the quarter ended September 30, 2026, up 32%, on Revenue of USD 92.3 billion, up 19%, with Diluted Earnings per Share of USD 4.92.
  • Azure revenue rose 48% and Microsoft Cloud revenue reached USD 63.9 billion, up 30%, while commercial remaining performance obligation, contracted work not yet booked as revenue, climbed 73% to USD 677 billion.
  • Operating income was USD 45.9 billion, up 21%. Non-GAAP net income was USD 36.4 billion, up 18%, because the adjusted figure excludes the OpenAI Investment effect that added USD 207 million to GAAP profit.
  • Published market data show MSFT at USD 507.12, down 2.83% in the latest session, with trailing net income of USD 133.75 billion and a price to earnings ratio of 26.48. These screener figures are unverified.

A Quarter Built on Cloud Scale

Microsoft announced its first quarter of fiscal 2027 results on October 28, 2026. Revenue of USD 92.3 billion rose 19%, and the Agents and Infra segment contributed USD 76.8 billion, up 25%. Within it, Azure grew 48%, while Microsoft 365 commercial cloud grew 17%. Operating Income of USD 45.9 billion rose 21%, so profit grew faster than sales. That operating leverage, meaning costs growing more slowly than revenue, is why GAAP net income climbed 32% to USD 36.6 billion. Microsoft (NASDAQ:MSFT) also returned USD 10.2 billion to shareholders through dividends and repurchases during the quarter.

Why Net Income Is the Right Yardstick

Net income is what remains after operating costs, interest and tax, so it measures the profit that actually belongs to shareholders. Screeners that rank the highest net income stocks use a trailing twelve month total, which is why Microsoft (NASDAQ:MSFT) sits near the top with USD 133.75 billion on published market data, a figure we have not matched to filings. GAAP and adjusted profit differ here by only a small amount. Non-GAAP net income of USD 36.4 billion strips out gains and losses on the OpenAI investment, which added USD 207 million and USD 0.03 per share to the GAAP result.

Risks and What to Watch

Not every part of the Business is growing. Devices and Consumer revenue of USD 15.5 billion fell 3%, and Windows OEM and Devices revenue fell 22%. The USD 677 billion Backlog only becomes revenue as Microsoft delivers capacity, so data centre supply, power availability and customer timing all matter. Profit also depends on how the OpenAI investment is accounted for, which can swing reported earnings in either direction. At a price to earnings ratio of 26.48 on screener data, MSFT already reflects strong expectations. The next Quarterly Report is normally due in late January, a timing we have not confirmed.

Where Things Stand

Microsoft earned USD 36.6 billion in the September 2026 quarter because cloud revenue grew quickly while operating costs grew more slowly, lifting operating income to USD 45.9 billion. The profit is real, filed and large, and it explains why Microsoft (NASDAQ:MSFT) ranks among the biggest earners in the US market. The share price slipped 2.83% in the latest session on screener data, a reminder that scale does not stop a stock from falling. The next test is whether Azure growth near 48% holds as the backlog converts to revenue.