- Microsoft Corp.
- 28 January 2026 23:12:16
Source: Sharecast
Microsoft said adjusted earnings came in at $4.14 per share, ahead of the $3.97 forecast, while revenues rose 16.7% year‑on‑year to $81.27bn, beating the $80.27bn expected. Net income jumped to $38.46bn from $24.11bn a year earlier, though gross margins narrowed to just over 68% - its lowest level in three years.
Azure and other cloud services grew 39%, a touch softer than the prior quarter's 40% expansion but broadly in line with expectations, while Intelligent Cloud revenue rose nearly 29% to $32.91bn, ahead of consensus.
Microsoft also booked $9.97bn in other income, helped by a dilution gain following OpenAI's restructuring, while commercial remaining performance obligations surged to $625bn, boosted by OpenAI's $250bn cloud commitment, with 45% of the total now tied to OpenAI. Commercial bookings jumped 230%.
Productivity and Business Processes revenues climbed 16% to $34.12bn, while More Personal Computing fell 3% to $14.25bn as gaming revenue declined and PC demand remained mixed. Capital spending continued to accelerate, rising 66% to $37.5bn in the quarter.
As of 2310 GMT, Microsoft shares were down 5.30% in extended trading at $456.10 each.
Reporting by Iain Gilbert at Sharecast.com