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Microsoft Reports Strong Q1 Results Driven by Azure
Microsoft (NASDAQ: MSFT) announced a $392 billion backlog in its Azure cloud computing platform during its Q1 fiscal results for 2026, which ended on September 30, marking a 51% year-over-year increase. Azure achieved a 40% revenue growth, highlighting the company’s position in the growing artificial intelligence sector. Overall, Microsoft’s revenue rose 18% year over year to $77.7 billion, with diluted earnings per share increasing by 13%.
The Productivity and Business Processes segment, encompassing Microsoft 365 and LinkedIn, saw revenues increase by 17% to $33 billion, while the Intelligent Cloud sector recorded $30.9 billion with a growth rate of 28%. However, the More Personal Computing division experienced a slower growth rate of 4%, contributing $13.8 billion to the total. Microsoft shares now trade at 39 times earnings, outpacing competitors like Alphabet, which trades at 30 times earnings.
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