Microsoft today released its first quarter 2027 earnings report, with $92.3 billion in revenue — an increase of 19% compared with the same period last year. The company’s cloud business continued to grow substantially.
Microsoft also reported that its commercial remaining performance obligation increased 73% to $677 billion. That figure represents contracted future business obligations and is not equivalent to committed data-center construction spending. The company’s results reflect continued demand for cloud services and AI-related computing capabilities.
“We delivered a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “Results exceeded expectations across revenue, operating income, and earnings per share.”
Notably, Microsoft’s SEC filing, which contains detailed financial disclosures including lease assets, liabilities, and commitments, revealed that Microsoft has approximately $364.6 billion in future leases that have not yet commenced, primarily for data centers. Some arrangements remain subject to contractual conditions.
Microsoft states (SEC filing, page 22, note 12):
As of September 30, 2026, we had additional leases, primarily for datacenters, that had not yet commenced of $364.6 billion, with some arrangements subject to certain contractual conditions being met. These leases will commence between fiscal year 2027 and fiscal year 2034 with lease terms of 1 year to 20 years.
The same filing separately identifies $33.0 billion in future operating lease payments and $95.2 billion in future finance lease payments associated with existing leases. Those amounts should not be confused with the $364.6 billion figure.
Tagged with data centers, Microsoft, Power Brief