Microsoft reports Q1 2027 revenue near $90.75B amid buyouts and $50B capital spending
Microsoft’s earnings report on Wednesday will reveal details about its voluntary buyout offer to about 60,000 employees—roughly a quarter of its workforce—while also marking the first quarter under its new reporting structure. Analysts expect revenue of $90.75 billion, up nearly 17% year-over-year, and earnings of $4.72 per share, up 14%, though Microsoft’s own forecast ranges from $89.85…
Key points
- Microsoft expects Q1 2027 revenue of **$90.75 billion**, up **17%** year-over-year, with earnings of **$4.72 per share**
- Company plans **capital spending of over $50 billion** for AI infrastructure, a record, despite accounting adjustments
- Anthropic commits **$44.9 billion** to Microsoft Azure (2026–2033), while OpenAI’s annualized revenue reportedly nears **$50 billion**
Azure revenue is expected to grow 44% to 45%, reaching roughly $32 billion, though investors may push for higher growth. Microsoft’s Microsoft 365 Copilot adoption continues to rise, with over 30 million paid seats (up from 20 million in April), though it remains a small fraction of the 450 million commercial Microsoft 365 seats. The company also disclosed a $44.9 billion Azure commitment from Anthropic (up from $30 billion) and a $3.2 billion gain from its $5 billion investment in the AI lab. Meanwhile, Windows revenue is projected to decline over 20% due to higher PC costs and inventory adjustments.
The story so far
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Microsoft earnings preview: Employee buyouts, AI spending and a new financial scorecard
geekwire.com · 27 October 2026
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