Microsoft released its first‑quarter results for the period ending September 30, 2026. Total revenue hit $92.3 billion, up 19 % year‑over‑year, while operating and net income rose 21 % and 32 % respectively.

The firm reshuffled its reporting structure into two segments: “Agents and Infrastructure,” covering Azure, Microsoft 365 and server solutions, and “Devices and Consumer Sector,” which now houses Windows, Xbox, Surface and its search‑and‑ads business. The former contributed 83 % of overall revenue, the latter 17 %, a 3 % decline from the previous year. Xbox itself saw sales dip 2 % YoY (down from a 10 % drop a quarter earlier), hardware revenue fell 14 %, and content‑and‑services income—including Game Pass—slid 2 %.

Nevertheless, the division’s head highlighted a slowdown in the revenue decline, record‑breaking performance of Minecraft and World of Warcraft: Forever, and stellar reviews for Call of Duty: Modern Warfare 4. Operating costs were trimmed by 3 % following a sweeping restructuring that began in July. Outlook for Q2 points to single‑digit growth in content and services revenue, driven by Modern Warfare 4 and the upcoming GTA VI, while console sales revenue is expected to keep falling, according to CFO Amy Hood.