Intelligent Cloud — Operating Income
Microsoft Intelligent Cloud — Operating Income decreased by 0.9% to $13.75B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 24.0%, from $11.10B to $13.75B. Over 4 years (FY 2021 to FY 2025), Intelligent Cloud — Operating Income shows an upward trend with a 14.3% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
An increase indicates successful scaling of cloud infrastructure and high-margin software services, while a decrease may signal aggressive price competition, rising energy costs, or heavy front-loaded investment in AI infrastructure.
Detailed definition
This metric represents the operating profit or loss generated by Microsoft's Intelligent Cloud segment, calculated as se...
Peer comparison
Similar to the operating income reported for Amazon Web Services (AWS) or Google Cloud's operating income at Alphabet.
msft_segment_intelligent_cloud_operating_income_lossHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $7.79B | $7.56B | $8.20B | $8.28B | $8.68B | $8.98B | $8.90B | $9.48B | $10.53B | $11.75B | $12.46B | $12.51B | $12.86B | $10.50B | $10.85B | $11.10B | $12.14B | $13.39B | $13.87B | $13.75B |
| QoQ Change | — | -2.9% | +8.4% | +1.0% | +4.8% | +3.4% | -0.8% | +6.4% | +11.1% | +11.6% | +6.0% | +0.4% | +2.8% | -18.3% | +3.3% | +2.2% | +9.4% | +10.3% | +3.6% | -0.9% |
| YoY Change | — | — | — | — | +11.5% | +18.7% | +8.6% | +14.4% | +21.3% | +30.9% | +39.9% | +32.0% | +22.2% | -10.6% | -12.9% | -11.3% | -5.6% | +27.5% | +27.8% | +24.0% |
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Frequently Asked Questions
- What is Microsoft's intelligent cloud — operating income?
- Microsoft (MSFT) reported intelligent cloud — operating income of $13.75B in Q1 2026.
- How has Microsoft's intelligent cloud — operating income changed year-over-year?
- Microsoft's intelligent cloud — operating income increased by 24.0% year-over-year, from $11.10B to $13.75B.
- What is the long-term trend for Microsoft's intelligent cloud — operating income?
- Over 4 years (2021 to 2025), Microsoft's intelligent cloud — operating income has grown at a 14.3% compound annual growth rate (CAGR), from $26.13B to $44.59B.
- What does intelligent cloud — operating income mean?
- The profit Microsoft makes from its cloud computing services and server software after paying for the hardware, data center operations, and research and development.