Microsoft reported fiscal first-quarter revenue of $92.28 billion, up 19%, and disclosed Azure revenue in dollars for the first time, according to its earnings release. Azure revenue was $33.165 billion for the quarter ended Sept. 30, up 48% from $22.384 billion a year earlier, the release’s product table shows. Microsoft announced the segment changes in September, and CNBC reported then that it would publish Azure sales in dollars. CNBC reported that analysts polled by StreetAccount had expected Azure revenue of $32.32 billion, and that Microsoft shares rose 5% in extended trading Wednesday.
Microsoft’s release put operating income at $45.9 billion, up 21%, and GAAP net income at $36.6 billion, up 32%, or $4.92 per diluted share. Non-GAAP net income was $36.4 billion, or $4.89 per share, up 18%. Microsoft said non-GAAP results exclude investments in OpenAI, which added $207 million to net income this quarter and cost $3.1 billion in the year-earlier quarter. CNBC reported LSEG consensus of $4.73 in adjusted earnings per share and $90.69 billion in revenue.
Microsoft reported under two operating segments. Agents and Infra had revenue of $76.8 billion, up 25%, and Devices and Consumer had $15.5 billion, down 3%. Microsoft said it recast prior periods for the segment changes. CNBC said it is the first time Microsoft has reported results under two segments since 1998. Microsoft Cloud revenue was $63.9 billion, up 30%, and commercial remaining performance obligation rose 73% to $677 billion, the release said. Windows OEM and Devices revenue fell 22%.
On spending, CNBC reported capital expenditures including finance leases of $45.2 billion, up about 30%, against a StreetAccount estimate of $50.67 billion. That figure is not in Microsoft’s release, which shows $39.367 billion in additions to property and equipment. The release does not report free cash flow. CNBC reported free cash flow of $18.63 billion, down 27%, which matches the release’s cash flow statement: $58.0 billion from operations less $39.367 billion in property and equipment additions, compared with $45.057 billion less $19.394 billion a year earlier.
Microsoft returned $10.2 billion to shareholders through dividends and buybacks, the release said. CNBC noted that Microsoft announced Monday it is offering voluntary buyouts to up to 60,000 employees as it balances its AI build-out with capital efficiency. Microsoft said it would provide forward-looking guidance on its earnings call.