Microsoft’s search and advertising revenue grew 12% in its fiscal first quarter of 2027, excluding traffic acquisition costs, according to Search Engine Roundtable. Barry Schwartz reported the figure alongside company-wide revenue growth of 19% to $92.3 billion. Search sits inside the More Personal Computing division, so ad results are one slice of a much larger report.
The wider quarter was strong too. Net income rose 32% to $36.6 billion, and Microsoft’s stock jumped over 7% in extended trading soon after the results appeared. CEO Satya Nadella pointed to agent safety and security as drivers of customer adoption.
Advertisers should read the 12% as steady growth, not a breakout. The figure covers search and advertising as a whole and does not isolate Bing, so it says little about any single surface. Teams that split budget across engines have a reason to keep testing Microsoft Advertising, but not evidence to move spend away from Google.
Search Engine Roundtable, Barry Schwartz, Oct. 28, 2026.
