WORLDTECHMicrosoft reports first-quarter results with OpenAI investment gains lifting net income
Microsoft has released its results for the first quarter of fiscal year 2027 and says revenue, operating income and earnings per share all came in above its expectations. The release also shows that its investments in OpenAI had a noticeable effect on reported profit.
OpenAI investments shape reported profit
In the first quarter of fiscal 2027, net gains from Microsoft's investments in OpenAI raised both net income and diluted earnings per share. Those gains added $207 million to net income and $0.03 to diluted earnings per share.
A year earlier the picture was reversed. In the first quarter of fiscal 2026, net losses from the same investments cut net income by $3.1 billion and diluted earnings per share by $0.41, when measured against the corresponding period.
How the company presents its figures
Alongside its GAAP results, Microsoft reports certain non-GAAP measures. According to the company, these give investors further insight into operational performance and help clarify trends in the business, and management reads them together with the GAAP figures.
The release is explicit that the non-GAAP measures are not a replacement for, and not superior to, financial measures prepared under GAAP. Results of entities reporting in other currencies are translated into US dollars at average exchange rates of the comparative period rather than at the rates in effect during each period. All growth comparisons refer to the corresponding period of the last fiscal year.
Conference call and replay details
Microsoft has arranged a conference call to discuss the quarter's performance and certain forward-looking information. Callers can dial (877) 407-0666, or +1 (201) 689-8023 from outside the United States, and no password is needed.
A replay of the webcast will remain available until the close of business on October 28, 2027.
Open questions
- What were the full revenue, operating income and earnings per share figures for the quarter?