---
title: "Microsoft Reports Strong Q1 2026 Financial Results"
description: "Microsoft reported strong Q1 2026 financial results, with an 18% revenue increase to $77.7 billion and a 24% rise in operating income to $38.0 billion. The growth was driven by demand for its cloud an"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/263371516.md"
published_at: "2025-10-29T20:41:56.000Z"
---

# Microsoft Reports Strong Q1 2026 Financial Results

> Microsoft reported strong Q1 2026 financial results, with an 18% revenue increase to $77.7 billion and a 24% rise in operating income to $38.0 billion. The growth was driven by demand for its cloud and AI services, including Microsoft 365 and Azure. The company returned $10.7 billion to shareholders and received a Buy rating from analysts with a $625 price target. Spark's AI Analyst rated MSFT as Outperform, citing robust growth and strategic investments, despite some caution due to premium pricing.

Microsoft ( (MSFT) ) has provided an announcement.

On October 29, 2025, Microsoft announced its financial results for the first quarter of fiscal year 2026, ending September 30, 2025, highlighting a strong performance driven by its cloud and AI services. The company reported an 18% increase in revenue to $77.7 billion, a 24% rise in operating income to $38.0 billion, and a 12% growth in net income to $27.7 billion on a GAAP basis. The results reflect the growing demand for Microsoft’s cloud platform, with significant contributions from Microsoft 365, Azure, and other cloud services. The company also emphasized its continued investment in AI and cloud technologies to capitalize on future opportunities, while returning $10.7 billion to shareholders through dividends and share repurchases.

The most recent analyst rating on (MSFT) stock is a Buy with a $625.00 price target. To see the full list of analyst forecasts on Microsoft stock, see the MSFT Stock Forecast page.

**Spark’s Take on MSFT Stock**

According to Spark, TipRanks’ AI Analyst, MSFT is a Outperform.

Microsoft’s strong financial performance and positive earnings call sentiment are the most significant factors driving the high stock score. The company’s robust growth in cloud and AI services, along with strategic investments, positions it well for future growth. While the technical analysis and valuation indicate some caution due to premium pricing, the overall outlook remains favorable.

To see Spark’s full report on MSFT stock, click here.

**More about Microsoft**

Microsoft Corporation is a leading technology company in the software industry, known for its cloud services, artificial intelligence products, and productivity solutions. It focuses on providing innovative technology solutions to a global market, with significant investments in AI and cloud computing.

**Average Trading Volume:** 20,531,055

**Technical Sentiment Signal:** Buy

**Current Market Cap:** $4029.3B

Learn more about MSFT stock on TipRanks’ Stock Analysis page.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.