Microsoft says OpenAI deals already generate 11% of its sales

Microsoft reported $92.3 billion in revenue for its first fiscal quarter of 2027, up 19% year over year, and net income of $36.6 billion, a 32% increase. Azure grew 48% to $33.2 billion, while Microsoft Cloud brought in $63.9 billion, up 30%. Free cash flow was $18.6 billion, and capital expenditures rose about 30% to $45.2 billion; the company attributed the figure being below its forecast to delays in receiving some third-party data-center capacity.

Microsoft says its commercial agreements with OpenAI, including revenue-sharing payments, generated $10 billion in the quarter—about 11% of sales, according to Bloomberg. After the relationship was restructured in April, Microsoft acquired a stake in OpenAI valued at approximately $135 billion and retained access to the company’s technology through 2032, according to Xataka.