Microsoft Booked $10 Billion From OpenAI in One Quarter, About 11% of Revenue, as Azure Reached $33.2 Billion

The line in Microsoft's quarter that matters most for the AI business is a related-party disclosure, not a headline number. Microsoft's Form 10-Q says it recorded $10.0 billion of revenue from commercial arrangements with OpenAI in the three months to September 30, including revenue-sharing payments. Against total revenue of $92.3 billion, that is about 11%, TechCrunch calculated, from a single customer and partner in which Microsoft holds an equity stake.

The OpenAI exposure#

The filing describes Microsoft's OpenAI investment as an equity-method holding of approximately 24% on an as-converted basis, which makes OpenAI a related party and triggers the disclosure. Accounts receivable from OpenAI rose to $7.2 billion at September 30 from $6.0 billion at June 30. Microsoft has funded $12.0 billion of its $13.0 billion total funding commitment.

Microsoft does not say how the $10 billion splits between services OpenAI buys from it and revenue-sharing payments. TechCrunch reported that Microsoft's annual report showed $24.1 billion of OpenAI revenue for fiscal 2026, and that the stake had been about 25% in June.

The investment itself added to profit this time. The 10-Q shows $272 million of net gains from OpenAI in other income, which Microsoft says raised net income by $207 million and diluted earnings per share by $0.03. A year earlier, OpenAI-related losses cut net income by $3.1 billion.

That concentration sits against what we reported this month about OpenAI's own numbers: Bloomberg said OpenAI told investors its annualized revenue was about $50 billion at the end of September.

The quarter#

Revenue rose 19% to $92.3 billion and operating income 21% to $45.9 billion, according to Microsoft's release. Net income was $36.6 billion, or $4.92 a share; excluding the OpenAI gains, $36.4 billion, or $4.89.

Azure revenue was $33.2 billion, up 48% from $22.4 billion, under a new segment structure Microsoft adopted this fiscal year. Reuters reported that this beat a Visible Alpha consensus of $32.84 billion and that the shares rose about 6% in extended trading. Commercial remaining performance obligation rose 73% to $677 billion, which Microsoft expects to recognise about 30% of over the next 12 months.

Spending kept pace. Additions to property and equipment were $39.4 billion, double the $19.4 billion a year earlier, and the 10-Q lists $364.6 billion of mostly data-centre leases signed but not yet commenced, starting between fiscal 2027 and 2034. The filing, published two days after Microsoft opened a voluntary exit offer to some staff, says total headcount was down 2% from a year earlier.

Limits#

• The $10.0 billion combines all commercial arrangements with OpenAI; Microsoft gives no split between Azure services and revenue share, and no margin.
• The 11% share is TechCrunch's calculation from the reported totals; the fiscal 2026 figure is as TechCrunch reported it from the annual report, which we did not reopen.
• Prior-year segment and Azure figures are recast under the new structure, so comparisons with older reports are not like-for-like.
• We read the 10-Q through StockTitan's full-text copy; Microsoft's own investor-site file did not load for us.

Sources#

• Microsoft: FY27 first-quarter earnings release, Exhibit 99.1 (SEC, October 28, 2026)
• Microsoft Form 10-Q for the quarter ended September 30, 2026, full text as carried by StockTitan (filed October 28, 2026)
• TechCrunch: Microsoft recorded $10 billion in revenue from OpenAI (October 28, 2026)
• Reuters via Investing.com: Microsoft beats quarterly cloud revenue estimates (October 28, 2026)