Microsoft (MSFT) · Software
Microsoft Q4 FY2026 earnings: summary, key numbers & outlook
Results filed 29 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Microsoft's fourth quarter revenue was $90.0 billion, up 18%, with operating income of $40.6 billion, up 18%, and diluted earnings per share of $4.81 on a GAAP basis, up 32%.
Microsoft's fiscal fourth quarter revenue was $90.0 billion, up 18%, and operating income was $40.6 billion, also up 18%. Microsoft Cloud revenue reached $59.3 billion, up 27%, and Azure and other cloud services grew 43%. GAAP diluted EPS was $4.81, up 32%. Non-GAAP EPS, which excludes OpenAI investment effects, was $4.74, up 23%. A $3.2 billion Anthropic gain helped GAAP results. More Personal Computing revenue fell 4%.
Management said it will give forward-looking guidance on the earnings call, and the release contains no guidance figures. The main tension is the scale of AI investment. Quarterly additions to property and equipment were $35,802 million, more than double the prior year's $17,079 million. Commercial remaining performance obligation rose 84% to $678 billion, which signals strong demand, but the spending must keep earning returns.
Key numbers
- Revenue · GAAP
- $90.0 billion
- Operating income · GAAP
- $40.6 billion
- Net income (GAAP) · GAAP
- $35.8 billion
- Net income (non-GAAP) · non-GAAP
- $35.3 billion
- Diluted EPS (GAAP) · GAAP
- $4.81
- Diluted EPS (non-GAAP) · non-GAAP
- $4.74
- Net cash from operations · GAAP
- $55.4B
- Microsoft Cloud revenue
- $59.3 billion
up 18% from a year ago (up 17% in constant currency)
up 18% from a year ago
up 31% from a year ago
up 22% from a year ago
up 32% from a year ago
up 23% from a year ago
up 27% year-over-year
| Segment or metric | Value | Change |
|---|---|---|
| Productivity and Business Processes revenue | $37.8 billion | up 14% |
| Intelligent Cloud revenue | $39.3 billion | up 32% (up 31% in constant currency) |
| More Personal Computing revenue | $12.9 billion | down 4% (down 5% in constant currency) |
| Azure and other cloud services revenue | 43% | up 43% |
| Commercial remaining performance obligation | $678 billion | up 84% |
| Microsoft 365 Copilot paid seats | over 30 million |
Where each number comes from
- Revenue: “Revenue was $90.0 billion and increased 18% (up 17% in constant currency) • Operating income was $40.6 billion and increased 18%”
- Operating income: “Revenue was $90.0 billion and increased 18% (up 17% in constant currency) • Operating income was $40.6 billion and increased 18%”
- Net income (GAAP): “Net income was $35.8 billion and increased 31% on a GAAP basis, and was $35.3 billion and increased 22% on a non-GAAP basis”
- Net income (non-GAAP): “Net income was $35.8 billion and increased 31% on a GAAP basis, and was $35.3 billion and increased 22% on a non-GAAP basis”
- Diluted EPS (GAAP): “Diluted earnings per share was $4.81 and increased 32% on a GAAP basis, and was $4.74 and increased 23% on a non-GAAP basis”
- Diluted EPS (non-GAAP): “Diluted earnings per share was $4.81 and increased 32% on a GAAP basis, and was $4.74 and increased 23% on a non-GAAP basis”
- Net cash from operations: “Net cash from operations | 55,441 | 42,647 | 182,935 | 136,162 Financing Repayments of debt, maturities of 90 days or less”
- Microsoft Cloud revenue: “We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year”
- Productivity and Business Processes revenue: “Revenue in Productivity and Business Processes was $37.8 billion and increased 14%, with the following business highlights:”
- Intelligent Cloud revenue: “Revenue in Intelligent Cloud was $39.3 billion and increased 32% (up 31% in constant currency), with the following business highlights:”
- More Personal Computing revenue: “Revenue in More Personal Computing was $12.9 billion and decreased 4% (down 5% in constant currency), with the following business highlights:”
- Azure and other cloud services revenue: “Revenue in Intelligent Cloud was $39.3 billion and increased 32% (up 31% in constant currency), with the following business highlights: • Azure and other cloud services revenue increased 43%”
- Commercial remaining performance obligation: “Microsoft Cloud revenue was $59.3 billion and increased 27%, and commercial remaining performance obligation increased 84% to $678 billion.”
- Microsoft 365 Copilot paid seats: “Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q4 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $90.0B | +17.7% | +8.6% |
| Operating income | $40.6B | +18.3% | +5.7% |
| Net income | $35.8B | +31.3% | +12.5% |
| Free cash flow | $19.6B | −23.2% | +24.3% |
| Gross margin | 67.2% | −1.4 pts | −0.4 pts |
| Operating margin | 45.1% | +0.2 pts | −1.2 pts |
Calculated by code from XBRL, not by the model.
Key takeaways
Azure and cloud growth drove the quarter
Microsoft Cloud revenue was $59.3 billion, up 27%, and Azure and other cloud services revenue increased 43%. Intelligent Cloud revenue was $39.3 billion, up 32%.
Backlog surged to $678 billion
Commercial remaining performance obligation increased 84% to $678 billion. That points to large contracted future revenue.
Capital spending more than doubled year over year
Additions to property and equipment were $35,802 million in the quarter versus $17,079 million a year earlier. For the fiscal year they were $115,948 million.
Discrete items lifted GAAP earnings per share
Discrete items, including a $3.2 billion gain from the Anthropic investment, gave a benefit of $0.27 to diluted EPS versus April guidance. Excluding OpenAI effects, EPS was $4.74, up 23%.
Consumer-facing segment shrank while cloud grew
More Personal Computing revenue was $12.9 billion, down 4%. Windows OEM and Devices fell 7% and XBOX content and services fell 10%.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q2 FY25 | $69.6B |
| Q3 FY25 | $70.1B |
| Q4 FY25 | $76.4B * |
| Q1 FY26 | $77.7B |
| Q2 FY26 | $81.3B |
| Q3 FY26 | $82.9B |
| Q4 FY26 | $90.0B * |
| Q1 FY27 | $92.3B |
Data
| Q2 FY25 | $3.23 |
| Q3 FY25 | $3.46 |
| Q1 FY26 | $3.72 |
| Q2 FY26 | $5.16 |
| Q3 FY26 | $4.27 |
| Q1 FY27 | $4.92 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q2 FY25 | 45.5% |
| Q3 FY25 | 45.7% |
| Q4 FY25 | 44.9% |
| Q1 FY26 | 48.9% |
| Q2 FY26 | 47.1% |
| Q3 FY26 | 46.3% |
| Q4 FY26 | 45.1% |
| Q1 FY27 | 49.8% |
Data
| Q2 FY25 | $6.5B |
| Q3 FY25 | $20.3B |
| Q4 FY25 | $25.6B |
| Q1 FY26 | $25.7B |
| Q2 FY26 | $5.9B |
| Q3 FY26 | $15.8B |
| Q4 FY26 | $19.6B |
| Q1 FY27 | $18.6B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Microsoft's Q4 FY2026 results?
Revenue was $90.0 billion, up 18%, and operating income was $40.6 billion, up 18%. GAAP net income was $35.8 billion, up 31%, and GAAP diluted EPS was $4.81, up 32%.
How did Azure and Microsoft Cloud perform?
Azure and other cloud services revenue increased 43%. Microsoft Cloud revenue was $59.3 billion, up 27%.
What is the difference between GAAP and non-GAAP EPS this quarter?
GAAP diluted EPS was $4.81, up 32%, while non-GAAP EPS was $4.74, up 23%. Non-GAAP results exclude the impact from investments in OpenAI.
How big is Microsoft's contracted cloud backlog?
Commercial remaining performance obligation increased 84% to $678 billion.
Did Microsoft give guidance for next quarter?
The release gives no figures and says guidance will be provided on the earnings call. No transcript was available, so no guidance figures are reported here.
Documents
SEC filing