Microsoft Reports Earnings Amid Massive AI Workforce Cuts
Microsoft reports fiscal first quarter results while implementing job cuts and buyouts to fund artificial intelligence infrastructure expansion.
Microsoft will report its fiscal first quarter results after the market close on Wednesday, October 28, 2026. The company is shifting its financial reporting for the first time since 1998, moving to two operating segments and disclosing Azure cloud revenue in dollars. Analysts expect Azure revenue to reach $32.32 billion, with total revenue projected at $90.69 billion and adjusted earnings of $4.73 per share.
To fund the expansion of artificial intelligence infrastructure while maintaining capital efficiency, the company cut 4,800 jobs during the quarter. On Monday, Microsoft further expanded these reductions by announcing buyouts for up to 60,000 employees.
During the period ending September 30, the company focused on AI integration by establishing a dedicated AI implementation unit. It also launched a Copilot AI super app featuring advanced coding capabilities.
