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Microsoft (MSFT) Reports Q1 Earnings: What Key Metrics Have to Say
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For the quarter ended September 2026, Microsoft (MSFT - Free Report) reported revenue of $92.28 billion, up 18.8% over the same period last year. EPS came in at $4.89, compared to $4.13 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $90.58 billion, representing a surprise of +1.88%. The company delivered an EPS surprise of +3.82%, with the consensus EPS estimate being $4.71.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Percentage Change Y/Y (GAAP)- Revenue: 19% versus the nine-analyst average estimate of 16.6%.
Percentage Change Y/Y (GAAP)- Microsoft Cloud: 30% versus the four-analyst average estimate of 28.3%.
Long-term unearned revenue: $2.7 billion versus $4.12 billion estimated by three analysts on average.
Devices and consumer - Total growth rate Y/Y: -3% versus -6.3% estimated by three analysts on average.
Revenue - Devices and Consumer: $15.48 billion versus $14.95 billion estimated by five analysts on average.
Revenue - Agents and Infra: $76.8 billion versus the five-analyst average estimate of $75.54 billion.
Microsoft Cloud revenue: $63.90 billion versus $62.92 billion estimated by four analysts on average.
Revenue - Devices and Consumer - XBOX: $5.38 billion versus the three-analyst average estimate of $5.14 billion.
Revenue- Product: $14.63 billion versus $17.94 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -8.1% change.
Revenue- Service and other: $77.65 billion compared to the $72.55 billion average estimate based on three analysts. The reported number represents a change of +25.7% year over year.
Revenue - Devices and Consumer - Windows OEM and Devices: $3.55 billion versus the two-analyst average estimate of $3.54 billion.
Revenue - Devices and Consumer - Search and Advertising: $6.55 billion compared to the $6.27 billion average estimate based on two analysts.
Shares of Microsoft have returned +4.4% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
View the Zacks #1 Rank List
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Microsoft (MSFT) Reports Q1 Earnings: What Key Metrics Have to Say
For the quarter ended September 2026, Microsoft (MSFT - Free Report) reported revenue of $92.28 billion, up 18.8% over the same period last year. EPS came in at $4.89, compared to $4.13 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $90.58 billion, representing a surprise of +1.88%. The company delivered an EPS surprise of +3.82%, with the consensus EPS estimate being $4.71.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for Microsoft here>>>
Shares of Microsoft have returned +4.4% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.