Microsoft reported $33.17 billion in Azure revenue and a 22% year-over-year decline in Windows OEM and devices revenue. Its reporting overhaul brings quarterly disclosure of Azure’s dollar contribution.
Microsoft reported $92.3 billion in revenue for its first quarter of fiscal 2027 while replacing three financial reporting segments with two, The Verge said in its October 28 earnings account. The new structure separates Azure and productivity software from Windows, Surface and Xbox, and brings quarterly disclosure of Azure revenue.
Revenue rose 19% from a year earlier, while net income rose 32% to $33.6 billion. The overhaul replaces Productivity and Business Processes, Intelligent Cloud, and More Personal Computing—the three segments Microsoft previously used to present its results.
| Segment | Included businesses | Revenue | Share of total | Year-over-year change |
|---|---|---|---|---|
| Agents and Infra | Azure, Microsoft 365 commercial and consumer, and server products | $76.8 billion | 83% | Up 25% |
| Devices and Consumer | Windows, Xbox, Surface, search and advertising |
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
3 min
| 17% |
| Down 3% |
Azure, Microsoft’s cloud service, contributed $33.17 billion, up 48% year over year. Its revenue is included in Agents and Infra, rather than forming a third segment. Quarterly disclosure gives investors a dollar figure for Azure alongside the larger segment that contains it.
The earnings account attributed broader cloud growth to strong demand for Azure and Microsoft 365 commercial cloud services.
The earnings account labels the 22% year-over-year decline “Windows OEM and devices.” OEM means original equipment manufacturer, referring here to PC makers. The Verge’s October 29 Notepad newsletter instead describes the same 22% fall as “Windows OEM revenue,” without including devices in the label.
Microsoft attributed the decline to a weaker PC market, PC makers reducing their inventories, and a comparison with the previous year, when Windows 10’s end of support had benefited revenue.
On the earnings call, chief financial officer Amy Hood forecast another Windows OEM revenue decline next quarter, by a percentage in the mid-30s. She expected declines to continue throughout fiscal 2027.
The US wireless carrier’s third-quarter service revenue rose 6% to $19.4 billion as it raised its expectations for the full year.
1 min
The startup says the IVP-led financing will support product development and expansion after its September shift from app building toward a superintelligence (SI) messenger.
2 min
