Azure outage disrupts global services; Microsoft reports FY26 Q1 results with 18% revenue growth
October 29, 2025000
- Azure incident begins ~16:00 UTC; Azure Front Door configuration change triggers latencies/timeouts/errors across services; recovery observed later in day
- Impacts include Microsoft services (Microsoft 365, Xbox Live, Minecraft) and third-party customers; airlines (e.g., Alaska Airlines) report app/website disruptions; some airports warn of delays
- AP reports Microsoft deployed a fix; incident occurred hours before earnings release
- FY26 Q1 (quarter ended 2025-09-30) results: revenue $77.7B (up ~18% YoY); AP reports profit $30.8B (up ~22% YoY)
- Cloud metrics: Microsoft Cloud revenue $30.9B (up ~28% YoY) as reported; Azure growth cited ~40% in third-party coverage; capex ~$34.9B in quarter, majority for AI/chips and data center real estate
- Gaming/Xbox: third-party coverage highlights continued Xbox hardware revenue decline (~29% YoY), modest content/services growth (~1% YoY) amid pivot to “Xbox everywhere” distribution strategy
- Investor reaction reported as mixed/negative after hours on spending and outage headlines