Microsoft reported first quarter 2027 results that exceeded analyst estimates for both top and bottom lines, driven by continued strength in cloud and AI demand. Total revenue grew 19% year-over-year to $92.3 billion, while cloud-specific revenue reached $63.9 billion.
Key Highlights
- Azure and other cloud services revenue grew 48% in constant currency, outperforming the consensus estimate of 45% and reflecting strong demand for AI infrastructure.
- Commercial remaining performance obligation (RPO) increased 73% year-over-year to $677 billion, indicating significant long-term enterprise commitment.
- Capital expenditures for infrastructure reached $39.4 billion, a substantial increase from $19.4 billion in the prior-year period, as the company scales to meet AI processing needs.
- Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.