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Author:
Jeroen Hidding
Jeroen entered Microsoft Licensing in 2008 at a Global LSP. Jeroen is specialized in optimizing complex Microsoft licensing requirements from a commercial perspective.
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Microsoft Earnings Report F... Microsoft Earnings Report FY26 Q1
Author:
Jeroen Hidding
Microsoft Earnings Release FY26 Q1
The Microsoft earnings call happened two days ago. This was their review of the quarter ending September 30, 2025. Microsoft continues to outperform the numbers provided in its outlook for the first quarter.
Review Financial Year 2026 Q1
Microsoft’s current focus is on Azure and Copilot, which makes sense considering more than 90% of the Fortune 500 now use Microsoft 365 Copilot. Additionally, its first-party family of Copilots has now surpassed 150 million monthly active users across various sectors, including information work, coding, security, science, health, and consumer.
Highlights from official numbers for the first quarter
- Productivity and Business Processes up 17%
- Intelligent Cloud up 28%
- More Personal Computing up 4%
Actual numbers versus expectations
- Productivity and Business Processes have grown to $33 billion – outlook was $32.2 billion
- Intelligent Cloud revenue ended up at $30.9 billion – outlook was $30.1 billion
- More Personal Computing revenue ended up at $13.8 billion – outlook was $12.4 billion
Outlook for Financial Year 2026 Q2
- Productivity and Business Processes revenue of $33.3 to $33.6 billion (13% to 14% growth)
- Intelligent Cloud revenue of $32.25 to $32.55 billion (26% to 27% growth)
- More Personal Computing revenue from $13.95 to $14.45 billion
Licensing Expert’s Insights
Microsoft’s FY2026 Q1 results demonstrate remarkable resilience amid a challenging macroeconomic environment, underscoring the company’s entrenched position across enterprise and consumer markets. Despite global headwinds such as elevated interest rates and tightening IT budgets, Microsoft’s revenue trajectory shows limited sensitivity to short-term economic fluctuations — a testament to the stickiness of its ecosystem and recurring cloud-driven revenues.
Looking ahead, growth momentum remains anchored in Azure and the expanding integration of Copilot across its productivity suite. These initiatives not only reinforce Microsoft’s leadership in cloud infrastructure and AI-powered solutions but also establish a strong foundation for continued margin expansion and enterprise adoption.
While there is growing geopolitical discourse around diversifying away from US technology providers, the reality is more nuanced. Many organizations—both in developed and emerging markets—continue to deepen their reliance on Microsoft’s platforms due to the unmatched interoperability, security standards, and scalability of its services. This dynamic positions Microsoft to maintain its competitive edge globally, even as the policy landscape evolves.
What’s your perspective on Microsoft’s latest results and its strategy going forward? Do you see sustained dominance ahead, or early signs of saturation in the AI-cloud race? Share your thoughts in the comments.
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