On October 30, Microsoft Corporation (NASDAQ: MSFT) today released its first quarter financial report for fiscal year 2026 ending on September 30. The financial report shows that, calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP),Microsoft's total revenue in the first fiscal quarter was US$77.673 billion, an increase of 18% from US$65.585 billion in the same period last year.Year-on-year growth of 17% at constant exchange rates;Net profit was US$27.747 billion, an increase of 12% from US$24.667 billion in the same period last year., a year-on-year increase of 11% at constant exchange rates.


Microsoft CEO Nadella and Altman

Microsoft said,The company's total commitment to OpenAI has reached $13 billion.As of the end of September this year, US$11.6 billion had been invested. The investment had an impact on Microsoft's profit in the first fiscal quarter of $3.086 billion.

share price performance:

Microsoft's fiscal first-quarter revenue and adjusted earnings per share both exceeded analysts' consensus estimates, but its stock price still fell more than 3% in after-hours trading.


Microsoft shares fell 3.30% after hours

Microsoft opened at $544.94 on the Nasdaq exchange on Wednesday. As of Wednesday's close, Microsoft's stock price fell by $0.52 to close at $541.55, a decrease of 0.10%. As of press time, Microsoft's stock price fell by US$17.84 to US$523.71 in after-hours trading, a decrease of 3.30%. In the past 52 weeks, Microsoft's stock price has been as high as $555.45 and as low as $344.79.

Highlights of fiscal first quarter results:

——Total revenue was US$77.673 billion, an increase of 18% from US$65.585 billion in the same period last year, and a year-on-year increase of 17% at constant exchange rates;

Microsoft cloud revenue was US$49.1 billion, a year-on-year increase of 26%, and a year-on-year increase of 25% at constant exchange rates;

·Productivity and business process segment revenue was US$33 billion, a year-on-year increase of 17%, a year-on-year increase of 14% at constant exchange rates; of which, LinkedIn revenue increased by 10% year-on-year, and a year-on-year increase of 9% at constant exchange rates;

·The revenue of the Intelligent Cloud Division was US$30.9 billion, a year-on-year increase of 28%, and a year-on-year increase of 27% at constant exchange rates; among which, Azure and other cloud service revenue increased by 40% year-on-year, and a year-on-year increase of 39% at constant exchange rates;

·More personal computing segment revenue was US$13.8 billion, a year-on-year increase of 4%; of which, Windows OEM and device revenue increased by 6% year-on-year;

——Operating profit was US$37.961 billion, an increase of 24% from US$30.552 billion in the same period last year, and a year-on-year increase of 22% at constant exchange rates;

——Net profit was US$27.747 billion, an increase of 12% from US$24.667 billion in the same period last year, and a year-on-year increase of 11% at constant exchange rates;

——Diluted earnings per share were US$3.72, an increase of 13% from US$3.30 in the same period last year, and a year-on-year increase of 11% at constant exchange rates;

——In the first fiscal quarter, Microsoft returned $10.7 billion to shareholders through dividends and stock repurchases.

Executive comments:

Microsoft Chairman and CEO Satya Nadella said: "Our global cloud and AI factory, combined with the Copilot intelligent assistant in high-value fields, are promoting widespread adoption of technology and making a real impact. Because of this, we continue to increase our dual investment in capital and talent in the field of artificial intelligence to seize the huge development opportunities in front of us."