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Microsoft (MSFT) earnings and revenue breakdown
Latest: Q1 FY27 · 10-Q filed Oct 28, 2026 · Microsoft (MSFT) Q1 FY27 earnings results →
Q1 FY27 Revenue up 19% year over year to $92.3B · 40¢ of every $1 of revenue kept as net profit · operating margin 49.8%
Microsoft made $92.3B in Q1 FY27 (+19% Y/Y): Azure $33.2B, Microsoft 365 Cloud $27.8B, Productivity and Server Licensing $8.4B. Operating margin 49.8%, net earnings $36.6B. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 28, 2026.
Drawing the Sankey…
Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF
What changed this quarter
Revenue was $92.3B in Q1 FY27, up 19% year over year and up 3% from the previous quarter. Azure was the largest line at 36% of revenue. Azure added $10.8B year over year (up 48%), 74% of the total change. Windows OEM and Devices declined 22%.
Gross margin was 67.8%, down 1.3 points from Q1 FY26. Operating profit was $45.9B, a 49.8% margin (up 0.9 points year over year). Of the extra revenue versus Q1 FY26, 54% reached operating profit, above the 49% margin then. Operating expenses grew 6% against revenue growth of 19%. The fastest-growing cost line was Research & development (+11%). Net earnings were $36.6B, up 32% year over year. The effective tax rate was 20.3%.
Operating cash flow was $58.0B (up 29% year over year), 158% of net earnings. Non-cash charges added back $12.1B of depreciation and amortization and $3.1B of share-based compensation. Working capital and other items added $6.1B. Capital expenditures of $39.4B left free cash flow of $18.6B.
Quarterly history
| Quarter | Form | Filed | Revenue | Y/Y | Op. margin | Net earnings | Op. cash flow |
|---|---|---|---|---|---|---|---|
| Q1 FY27 | 10-Q | Oct 28, 2026 | $92.3B | +19% | 49.8% | $36.6B | $58.0B |
| Q4 FY26 | 10-K | Jul 29, 2026 | $90.0B | +18% | 45.1% | $35.8B | $55.4B |
| Q3 FY26 | 10-Q | Apr 29, 2026 | $82.9B | +18% | 46.3% | $31.8B | $46.7B |
| Q2 FY26 | 10-Q | Jan 28, 2026 | $81.3B | +17% | 47.1% | $38.5B | $35.8B |
| Q1 FY26 | 10-Q | Oct 29, 2025 | $77.7B | +18% | 48.9% | $27.7B | $45.1B |
| Q4 FY25 | 10-K | Jul 30, 2025 | $76.4B | +18% | 44.9% | $27.2B | $42.6B |
| Q3 FY25 | 10-Q | Apr 30, 2025 | $70.1B | +13% | 45.7% | $25.8B | $37.0B |
Charts
In supply chains and themes
Interactive views
The same charts as the app — open one to draw it.
💵Where each $1 goesinteractive
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🌏Named in Asian annual reportsinteractive
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🔄Rotation against the market and its industry (RRG)interactive
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🔍Earnings qualityinteractive
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⚖️Fair value by methodinteractive
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🔭Outlook & guidanceinteractive
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📈Investments: gains and what it boughtinteractive
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🏭Its industry’s money flow (input-output)interactive
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Customers and suppliers named in filings
Sells to
- NSIT — 32% of its revenue · Stated in 10-K (sentence) · source
- CNXN — 13% of its revenue · Stated in 10-K (sentence) · source
- XHLD — 13% of its revenue · Stated in 10-K (sentence) · source
- EXTR · Stated in 10-K (named, share not stated) · source
- LRN · Stated in 10-K (named, share not stated) · source
- HCAT · Stated in 10-K (named, share not stated) · source
- GLXY · Stated in 10-K (named, share not stated) · source
- CVLT · Stated in 10-K (named, share not stated) · source
- PLTR · Stated in 10-K (named, share not stated) · source
- OLB · Stated in 10-K (named, share not stated) · source
- TREE · Stated in 10-K (named, share not stated) · source
- VERI · Stated in 10-K (named, share not stated) · source
Buys from
- MSGM — 64% of the supplier’s revenue · Stated in 10-K (sentence) · source
- TBLA — 34% of the supplier’s revenue · Stated in 10-K (sentence) · source
- Electronic Arts Inc. — 17% of the supplier’s revenue · Stated in 10-K (sentence) · source
- TTWO · Stated in 10-K (named, share not stated) · source
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
In its own words, from its 8-K, filed Jul 29, 2026.
Microsoft against its Services-Prepackaged Software peers
The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +19% against the peers' median +19%. Operating margin: 49.8% against the peers' median 15.2%.
| Company | Quarter | Revenue | Y/Y | Op. margin |
|---|---|---|---|---|
| MSFT Microsoft | Q1 FY27 | $92.3B | +19% | 49.8% |
| ORCL Oracle | Q1 FY27 | $19.3B | +30% | 34.8% |
| CRM Salesforce | Q2 FY27 | $11.3B | +11% | 20.5% |
| ADBE Adobe | Q3 FY26 | $6.8B | +13% | 34.8% |
| XYZ Block | Q3 2026 | $6.7B | +10% | 6.4% |
| INTU Intuit | Q4 FY26 | $4.4B | +14% | 10.9% |
| NOW ServiceNow | Q3 2026 | $4.1B | +20% | 9.4% |
| SHOP Shopify | Q3 2026 | $3.7B | +32% | 15.2% |
| CRWV CoreWeave | Q2 2026 | $2.6B | +112% | -1.9% |
Source: Microsoft 10-Q on SEC EDGAR · CIK 789019 · Services-Prepackaged Software
Guidance and outlook
13F: who owns MSFT and who is buying
More on MSFT
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- Microsoft next earnings date and what analysts expect
- Microsoft stock forecast, price target and fair value
- Who owns Microsoft stock: holders, funds and Congress trades
- Microsoft guidance and outlook
- Is Microsoft a takeover target? LBO and rumors
- Microsoft recalls, complaints and regulation
History
Every quarter: Q1 FY27 results · Q4 FY26 results · Q3 FY26 results · Q2 FY26 results · Q1 FY26 results · Q4 FY25 results · Q3 FY25 results