Q1 FY2026 results: revenue $77.7B (+18%), Azure +40%, RPO +51% to $392B; 8-K and 10-Q filed; widespread Microsoft 365/Azure outage; additional proxy solicitations
October 29, 2025000
- Press release headline metrics for quarter ended 2025-09-30: revenue $77.673B (+18%); operating income $37.961B (+24%); GAAP net income $27.747B (+12%); GAAP diluted EPS $3.72 (+13%)
- Non-GAAP (excluding impact from investments in OpenAI): net income $30.833B (+22%); diluted EPS $4.13 (+23%)
- Microsoft Cloud revenue $49.1B (+26%); commercial remaining performance obligation (RPO) $392B (+51%)
- Segment revenue: Productivity & Business Processes $33.020B (+17%); Intelligent Cloud $30.897B (+28%); More Personal Computing $13.756B (+4%)
- Selected KPIs: Azure and other cloud services revenue +40% (cc +39%); Microsoft 365 Commercial cloud +17% (cc +15%); Microsoft 365 Consumer cloud +26% (cc +25%); LinkedIn +10% (cc +9%); Dynamics 365 +18% (cc +16%); Windows OEM and Devices +6%; Search & news advertising ex-TAC +16% (cc +15%); Xbox content & services +1% (flat cc)
- Capital return: $10.7B returned via dividends and share repurchases in the quarter
- 8-K furnished including exhibits: 99.1 earnings press release; 99.2 Microsoft blog post dated 2025-10-28 on OpenAI partnership; 99.3 investor presentation for Q1 FY26 results; 10-Q for period ended 2025-09-30 filed
- Operational incident: Microsoft 365 and Azure experienced widespread service disruptions; company acknowledged issues via status communications; services restored with residual impacts tapering afterward
- Additional proxy activity: PX14A6G exempt solicitations filed by multiple filers (including John Chevedden; National Center for Public Policy Research) addressing Microsoft’s handling of shareholder proposals and urging specific voting actions