Microsoft Azure Revenue Grows 48% Driven by Surging AI Demand

29 Oct 2026, 9:58 am · 2h ago · 1 min read · Analytics India MagazineNew

Microsoft reported a 48% year-on-year surge in Azure revenue for Q1 FY27, powered by high demand for cloud and AI services. Total quarterly revenue increased 19% to $92.3 billion, while net income rose 32% to $36.6 billion. Capital expenditure reached $45.2 billion during the quarter, with full-year 2026 capex projected at around $170 billion as AI infrastructure demand outpaces capacity. CFO Amy Hood projected Azure growth of 49% to 50% for the December quarter. Separately, Microsoft introduced voluntary exit packages covering roughly 60,000 employees globally across India, the US, UK, and Canada.