Microsoft posts $92.3bn, beats estimates, offers 60,000 buyouts

Microsoft reported $92.3 billion in quarterly revenue and more than $36.6 billion in profit for the September quarter, ahead of roughly $90.6 billion in revenue and $35.1 billion in profit expected by FactSet analysts. Its Azure cloud computing division grew 48% in the same period.

Microsoft shares gained billions of dollars in market value Wednesday afternoon after the company posted the better-than-expected result. The earnings report came two days after Microsoft offered voluntary buyouts to about 60,000 employees, roughly one-quarter of its workforce.

“We are delivering greater capability, choice, control, and cost-efficiency for customers across our entire stack,” Microsoft chief executive Satya Nadella said in a statement. Azure's 48% increase supplied the clearest numerical driver in the filing. FactSet's forecasts showed that both revenue and profit exceeded market expectations.

What drove Microsoft's growth?

Microsoft filed the quarterly results Wednesday. In the securities filing, Azure's 48% increase supplied the main operating driver. Total revenue of $92.3 billion topped FactSet's roughly $90.6 billion forecast, and profit of more than $36.6 billion exceeded the $35.1 billion forecast.

Azure supplied the momentum behind Microsoft's above-forecast quarter.

How large is Microsoft's workforce buyout?

The buyout announcement came as Microsoft spent heavily on artificial intelligence investments. The latest action was a voluntary buyout offer for about 60,000 employees, roughly one-quarter of the company's workforce, two days before the earnings report.

It was Microsoft's second voluntary buyout offer this year. In April, the company gave seven percent of its US workforce the option to retire early. The latest offer again used voluntary buyouts, this time across about 60,000 employees.

Microsoft had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings. Because the latest buyout offer came only two days before earnings, that June-end headcount predates the program. The figures set the starting point for the buyout, not its final result.

Microsoft is now offering roughly one in four employees a voluntary exit while it continues heavy spending on artificial intelligence.

Why is Microsoft pushing artificial intelligence onto devices?

Earlier this month, Microsoft announced the new Surface Ultra laptop, which runs on Nvidia's artificial intelligence chips and will cost more than $2,500. Apple announced a similar touchscreen Macbook this week. The launches form part of a broader technology push toward hardware that can handle more artificial intelligence computing on-device and offline.

The industry push seeks to reduce users' reliance on remote cloud datacenters, where running artificial intelligence is slower and more expensive. Microsoft's Surface Ultra extends that push into a device designed to process more tasks locally.

Nadella described Microsoft's approach in terms of greater capability, choice, control and cost-efficiency across the entire stack. The Surface Ultra launch adds a hardware route to that promise. At more than $2,500, the device also gives Microsoft a price point for its on-device artificial intelligence strategy.

Microsoft is pursuing artificial intelligence on two fronts: Azure's remote infrastructure and premium devices that shift more computation onto local hardware.

What should investors watch next?

Microsoft's next quarterly filing will test whether Azure can sustain its 48% growth while the company manages voluntary exits offered to about 60,000 employees. The Surface Ultra's reception will also test whether customers will pay more than $2,500 for hardware built to run artificial intelligence on-device and offline.

Microsoft has placed Azure, Nvidia-based chips and the Surface Ultra behind the same artificial intelligence push. The investment test is whether those assets translate into sustained revenue and profit while the company changes the size of its workforce.

For investors, the next filing will show whether Azure's 48% growth persists as Microsoft manages the buyout program and tests demand for the $2,500-plus Surface Ultra.