Microsoft Reports 10 Consecutive Quarters of Record Revenue Fueled by Cloud and AI Growth

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Microsoft has achieved record quarterly revenue for the tenth straight time, reporting $92.3 billion in revenue driven by strong cloud demand and AI-related services, including $10 billion from OpenAI.

Microsoft announced its financial results for the latest quarter on October 28, 2026, marking the tenth consecutive quarter of record-breaking revenue. The tech giant reported total revenue of $92.3 billion for the quarter, representing a 19% year-over-year increase. Net income also rose sharply, reaching $36.6 billion, up 32% on a GAAP basis compared to the same period last year.

A primary driver of Microsoft's robust financial performance is its cloud computing segment. Microsoft Cloud revenue hit $63.9 billion, a 30% boost from the year-ago quarter. Within this segment, Azure—the company's cloud platform—contributed $33.2 billion. Microsoft 365, which includes productivity software, accounted for nearly $28 billion in revenue. While not all this revenue stems directly from artificial intelligence (AI), cloud services heavily support numerous AI workloads and traditional enterprise software alike.

Significantly, Microsoft highlighted $10 billion in revenue from OpenAI, the AI research organization whose services largely run on Microsoft Azure. Although OpenAI has expanded to other cloud providers, Microsoft remains a key platform for its operations, as does Anthropic, another AI firm relying on Azure infrastructure. Microsoft's reported $677 billion in commercial remaining performance obligations, up 73%, signifies substantial future revenue committed through existing contracts with AI labs and other customers.

Despite these gains, some traditional segments showed declines. The Devices and Consumer division, which includes Windows OEM and hardware sales, reported revenue of $15.5 billion, marking a 3% decrease year-over-year, with Windows OEM and devices revenue falling by 22%.

Microsoft also disclosed elevated capital expenditures of $45.2 billion this quarter, setting a new record. This substantial investment underpins infrastructure expansion and capacity to meet growing cloud and AI demands.

Overall, Microsoft’s financial results underscore the company's evolving focus on cloud computing and AI as central revenue drivers, while traditional hardware and software sales face challenges. The continuation of record revenue streaks highlights strong market confidence in Microsoft's expanding cloud and AI strategy.