Microsoft Q1 2026 Financial Results and OpenAI Partnership Update

Microsoft Corporation reported its financial results for the first quarter of fiscal year 2026, ending September 30, 2025. The company announced revenue of $77.7 billion, an 18% increase year-over-year, and operating income of $38.0 billion, up 24%. Net income on a GAAP basis was $27.7 billion, a 12% increase, while non-GAAP net income was $30.8 billion, up 22%. Diluted earnings per share (EPS) on a GAAP basis were $3.72, a 13% increase, and non-GAAP EPS were $4.13, up 23%. Microsoft Cloud revenue grew 26% to $49.1 billion, and the company returned $10.7 billion to shareholders through dividends and share repurchases. Additionally, Microsoft provided an update on its partnership with OpenAI, including a new definitive agreement that strengthens the collaboration and sets the stage for long-term success. The agreement includes provisions for independent innovation and growth, with Microsoft holding a 27% stake in OpenAI Group PBC.