Filing Flows › Microsoft (MSFT) › Q1 FY27 › vs Q4 FY26
Microsoft (MSFT) Q1 FY27 vs Q4 FY26 (quarter over quarter)
Microsoft's revenue rose $2.3B (+3%) from $90.0B in Q4 FY26 to $92.3B in Q1 FY27. Gross margin 67.8% against 67.2% (+0.6 pts).
Microsoft, Q1 FY27: revenue $92.3B (+19% year over year), operating margin 49.8%, net earnings $36.6B, operating cash flow $58.0B. The chart draws each line against Q4 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q4 FY26 | Change | |
|---|---|---|---|
| Gross margin | 67.8% | 67.2% | +0.6 pts |
| Operating margin | 49.8% | 45.1% | +4.6 pts |
| Net margin | 39.7% | 39.7% | -0.0 pts |
| Free cash flow margin | 20.2% | 21.8% | -1.6 pts |
Every line
| Line | Q1 FY27 | Q4 FY26 | Change | % |
|---|---|---|---|---|
| Revenue | $92.3B | $90.0B | $2.3B | +3% |
| Gross profit | $62.6B | $60.5B | $2.1B | +3% |
| Cost of revenue | $29.7B | $29.5B | $195M | +0.7% |
| Operating profit | $45.9B | $40.6B | $5.3B | +13% |
| Operating expenses | $16.6B | $19.9B | −$3.2B | -16% |
| Pre-tax earnings | $46.0B | $44.0B | $1.9B | +4% |
| Research & development | $9.0B | $10.0B | −$950M | -10% |
| Sales & marketing | $5.7B | $7.6B | −$1.9B | -25% |
| General & admin | $1.9B | $2.3B | −$406M | -18% |
| Net earnings | $36.6B | $35.8B | $863M | +2% |
| Income tax | $9.3B | $8.3B | $1.0B | +13% |
| Depreciation & amortization | $12.1B | $11.3B | $800M | +7% |
| Share-based compensation | $3.1B | $3.1B | $12.0M | +0.4% |
| Working capital & other | $6.1B | $5.3B | $884M | +17% |
| Operating cash flow | $58.0B | $55.4B | $2.6B | +5% |
| Free cash flow (OCF − capex) | $18.6B | $19.6B | −$1.0B | -5% |
| Capital expenditures | $39.4B | $35.8B | $3.6B | +10% |
Questions
How much did Microsoft's revenue grow quarter over quarter in Q1 FY27?
Microsoft's revenue rose $2.3B (+3%) from $90.0B in Q4 FY26 to $92.3B in Q1 FY27. Gross margin 67.8% against 67.2% (+0.6 pts).