2 publishers · first seen Wed, 28 Oct 2026 20:13 UTC · updated Wed, 28 Oct 2026 21:58 UTC
Microsoft reported $92 billion in revenue for the July-September quarter, exceeding analysts' expectations of $90.64 billion, with Azure generating $33.2 billion in revenue, up 48% year-on-year. This marks the first time Microsoft disclosed Azure's revenue in dollar terms, revealing it surpassed the $32.3 billion analysts expected. The growth in Azure, which now accounts for about 36% of Microsoft's total revenue, outpaced the 44% to 45% forecast by CFO Amy Hood in July.
Microsoft also announced a voluntary retirement program for around 60,000 employees, affecting about 27% of its workforce, as it restructures amid heavy investments in AI infrastructure. Investors are assessing whether the strong cloud and AI revenue growth justifies the high spending, especially as Microsoft's stock rose nearly 5% after the earnings release. The company's commercial bookings reached $678 billion, with commitments from AI firms like Anthropic, which pledged $44.9 billion in cloud spending from November 2026 to May 2033.
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