# Microsoft (MSFT) Q4 FY2026 earnings

Results filed 2026-07-29 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/msft/2026-q4/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/789019/000119312526323632/0001193125-26-323632-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $90.0 billion | up 18% from a year ago (up 17% in constant currency) | GAAP |
| Operating income | $40.6 billion | up 18% from a year ago | GAAP |
| Net income (GAAP) | $35.8 billion | up 31% from a year ago | GAAP |
| Net income (non-GAAP) | $35.3 billion | up 22% from a year ago | non-GAAP |
| Diluted EPS (GAAP) | $4.81 | up 32% from a year ago | GAAP |
| Diluted EPS (non-GAAP) | $4.74 | up 23% from a year ago | non-GAAP |
| Net cash from operations | 55,441 |  | GAAP |
| Microsoft Cloud revenue | $59.3 billion | up 27% year-over-year |  |

## Segments and operating metrics

| Name | 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 |  |

## Key takeaways

1. **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%.
2. **Backlog surged to $678 billion** Commercial remaining performance obligation increased 84% to $678 billion. That points to large contracted future revenue.
3. **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.
4. **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%.
5. **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%.

## 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.