Intelligent Cloud — Operating Expenses
Microsoft Intelligent Cloud — Operating Expenses increased by 6.2% to $5.81B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 8.6%, from $5.35B to $5.81B. Over 2 years (FY 2023 to FY 2025), Intelligent Cloud — Operating Expenses shows relatively stable performance with a 2.6% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase may signal aggressive investment in AI innovation or global sales expansion, while a decrease relative to revenue suggests improved operational efficiency and higher segment margins.
Detailed definition
This metric represents the total operating expenses incurred by Microsoft's Intelligent Cloud segment, encompassing rese...
Peer comparison
Similar to the operating expenses associated with Amazon Web Services (AWS) or Google Cloud's non-direct operational overhead.
msft_segment_intelligent_cloud_operating_expensesHistorical Data
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $5.11B | $5.11B | $5.11B | $5.11B | $5.01B | $5.01B | $5.01B | $5.01B | $4.98B | $5.29B | $5.35B | $5.89B | $5.19B | $5.47B | $5.81B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | -1.9% | +0.0% | +0.0% | +0.0% | -0.7% | +6.3% | +1.2% | +10.2% | -11.9% | +5.3% | +6.2% |
| YoY Change | — | — | — | — | -1.9% | -1.9% | -1.9% | -1.9% | -0.7% | +5.5% | +6.8% | +17.6% | +4.4% | +3.4% | +8.6% |
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Frequently Asked Questions
- What is Microsoft's intelligent cloud — operating expenses?
- Microsoft (MSFT) reported intelligent cloud — operating expenses of $5.81B in Q1 2026.
- How has Microsoft's intelligent cloud — operating expenses changed year-over-year?
- Microsoft's intelligent cloud — operating expenses increased by 8.6% year-over-year, from $5.35B to $5.81B.
- What is the long-term trend for Microsoft's intelligent cloud — operating expenses?
- Over 2 years (2023 to 2025), Microsoft's intelligent cloud — operating expenses has grown at a 2.6% compound annual growth rate (CAGR), from $20.42B to $21.51B.
- What does intelligent cloud — operating expenses mean?
- The total cost of running, developing, and selling Microsoft's cloud and server products, excluding the direct costs of providing the services themselves.