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Microsoft’s $677 Billion AI-Era Backlog: Can Azure’s 48% Growth Deliver?

Microsoft Corporation reported strong financial results for the quarter ended September 30, 2026, with total revenue reaching $92.3 billion, a 19% increase year-over-year, and operating income rising 21% to $45.9 billion. Net income grew by 32% on a GAAP basis to $36.6 billion, supported by a 32% increase in diluted earnings per share to $4.92. On a non-GAAP basis, adjusting for net gains and losses from investments in OpenAI, net income increased 18% to $36.4 billion, and diluted earnings per share increased 18% to $4.89. The company reports strong constant currency growth, with revenue and operating income up 19% and 22%, respectively. The Agents and Infrastructure segment was the primary revenue driver, generating $76.8 billion, up 25%, with Microsoft Cloud revenue hitting $63.9 billion, a 30% increase. Azure revenue showed robust expansion at 48%, while Microsoft 365 commercial and consumer cloud revenues grew 18% and 17%, respectively.