Microsoft Q1 FY27: where the revenue came from and where it went
The whole income statement of Microsoft for this quarter, as one diagram: what earned the revenue, and what it went on.
- Period
- Jul 1 – Sep 30, 2026
- Reported
- Oct 28, 2026
Revenue$92.3B
+19% year over year
Gross profit$62.6B
68% margin
Operating profit$45.9B
50% margin
Net profit$36.6B
40% margin
Figures in billions of dollars.
The numbers
| Item | Value | Share of revenue | Year over year |
|---|---|---|---|
| Revenue | 92.3 | 100% | +19% |
| Azure | 33.2 | 36% | |
| Microsoft 365 cloud | 27.8 | 30% | |
| Productivity | 8.4 | 9% | |
| Search & advertising | 6.6 | 7% | |
| Xbox | 5.4 | 6% | |
| Industry solutions | 5.3 | 6% | |
| Windows OEM & devices | 3.6 | 4% | |
| Frontier & support | 2.1 | 2% | |
| Cost of revenue | −29.7 | 32% | |
| Gross profit | 62.6 | 68% margin | −1pp |
| R&D | −9.0 | 10% | −1pp |
| Sales & marketing | −5.7 | 6% | −1pp |
| G&A | −1.9 | 2% | +0pp |
| Operating profit | 45.9 | 50% margin | +1pp |
| Tax | −9.3 | ||
| Net profit | 36.6 | 40% margin | +4pp |
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