Microsoft Corporation Q1 2027 Earnings Recap

Microsoft reported 30% year-over-year growth in Microsoft Cloud revenue, while Copilot usage and customer adoption advanced. The stock was essentially flat after earnings, down 0.2%, indicating a muted market reaction.

Key Takeaways

• Microsoft Cloud revenue surpassed $63 billion, with year-over-year growth accelerating to 30%.
• Copilot daily users rose nearly 50% quarter-over-quarter and more than 5x year-over-year; user satisfaction improved nearly 20% quarter-over-quarter.
• Customers with more than 50,000 Copilot seats increased over 8x year-over-year. Volkswagen plans to deploy Copilot to more than 330,000 employees.
• Copilot customers actively consuming credits through usage-based billing grew over 75% during the quarter, pointing to expansion beyond per-seat subscriptions.
• Agent-generated pull requests on GitHub increased 6x over the past six months and now account for more than one-third of all pull requests; Microsoft also cited ongoing work to expand capacity and rebuild core Git architecture for increased agent activity.