Microsoft reports $81.3B revenue as profits jump 60% amid big A.I. spending

Microsoft said on Wednesday, Jan. 28, 2026, that in its most recent quarter it had revenue of $81.3 billion and profits of $38.5 billion, up 60 percent from a year earlier; its shares fell more than 5 percent in after-hours trading. The company said it spent $37.5 billion on capital expenditures in the quarter, about a 65 percent increase from the same period a year ago, as it continued to build data center capacity for artificial intelligence amid demand that outstrips available supply.

Microsoft reported that revenue rose 17 percent and that both revenue and profits beat Wall Street expectations. Its Azure business was up 39 percent, slightly topping analysts' forecasts, and Satya Nadella said in a statement, "We are only at the beginning phases of A.I. diffusion and already Microsoft has built an A.I.

business that is larger than some of our biggest franchises." The company’s A.I. business has been closely tied to OpenAI. The report said that under OpenAI’s plan to transition to a for-profit corporate structure, Microsoft is expected to get a roughly $135 billion stake and unfettered access to its technology, and that OpenAI committed to buying $250 billion in computing power from Microsoft.

Microsoft said the capacity constraints would persist through 2026. Mr. Nadella said during last quarter’s earnings call that Microsoft planned to increase its total A.I. capacity by more than 80 percent over the next two years.

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