Microsoft ( MSFT -1.55%) posted results for the fiscal first quarter of 2027 (the three months ending Sept. 30, 2026) on Wednesday, Oct. 28. Revenue climbed 19% year over year to $92.3 billion, and earnings per share grew 18% on a non-GAAP (adjusted) basis.

Microsoft has never disclosed Azure's quarterly revenue in dollars. But for the first time, we can see just how close it is getting to besting the biggest competitor in the market, AWS.

This is the first earnings report in which Microsoft disclosed the dollar amount of revenue generated by its Azure cloud-computing business. That amounted to $33.16 billion in the September quarter, Microsoft noted in its report.

Azure is accelerating, Copilot adoption is surging, and Microsoft's commercial backlog sits at $677 billion, yet the stock trails the S&P 500 by a wide margin. Something has to give, and the answer hinges on whether a $170 billion spending bet pays off before investors lose patience.

Microsoft Corporation Q3 earnings highlight Azure growth, AI demand, and undervaluation. Click for this MSFT update and see why I remain bullish.

Who is profiting from the AI boom?”While news stories focus on new AI services, the ones reliably receiving money behind the scenes are the cloud companies that rent out the computers used to run AI.On October 28,

Various factors indicate that Microsoft is in a better financial position than its cloud rivals, analysts say.

Microsoft Azure Q1 FY2027 earnings showed 48% year-over-year revenue growth to $33.2 billion -- the platform's fastest rate in at least two years -- while capital expenditure landed $6 billion below analyst estimates and the company introduced its 'Agents and Infra' segment to declare AI agents its primary cloud revenue driver for years ahead.