Microsoft reported revenue of $90.0 billion for its fiscal fourth quarter ended June 30, 2026, an increase of 18% from the same period a year earlier. The company’s results, released on July 29, showed that cloud and artificial-intelligence demand remained the main growth engines even as infrastructure spending stayed elevated.
Azure growth reaches 43%
Revenue from Azure and other cloud services increased 43% year over year, according to Microsoft’s official earnings release. Reuters reported that this was above the roughly 40% growth expected by analysts tracked by Visible Alpha. Microsoft Cloud revenue reached $59.3 billion, up 27%.
The company said its commercial remaining performance obligation, a measure that includes contracted revenue not yet recognized, rose 84% to $678 billion. Microsoft also reported that Azure’s annual revenue passed $100 billion for the first time and that Microsoft 365 Copilot exceeded 30 million paid seats.
Profit rises, with investment effects disclosed
Operating income increased 18% to $40.6 billion. GAAP net income rose 31% to $35.8 billion, while diluted earnings per share increased 32% to $4.81. Microsoft separately reported non-GAAP net income of $35.3 billion and non-GAAP earnings of $4.74 per share after excluding the effect of its OpenAI investments.
The company said several discrete items produced a $0.27 benefit to diluted earnings per share compared with its previous guidance. These included a $3.2 billion gain on an Anthropic investment and lower-than-expected costs tied to a voluntary retirement program, partly offset by severance costs and impairment charges involving Xbox.
Mixed performance across business units
Productivity and Business Processes revenue reached $37.8 billion, up 14%. Intelligent Cloud revenue increased 32% to $39.3 billion. More Personal Computing revenue, however, declined 4% to $12.9 billion. Within that segment, Windows OEM and Devices revenue fell 7%, while Xbox content and services revenue declined 10%.
Reuters reported capital expenditure of $41 billion for the quarter, more than 70% above the year-earlier level but below the market estimate it cited. The scale of that spending remains central to the debate around AI infrastructure, because Microsoft is expanding data-center capacity while seeking stronger adoption of Azure and Copilot services.
The results establish strong cloud growth for the quarter, but they do not guarantee the same pace in future periods. Microsoft said it would provide forward-looking guidance during its earnings call. Any outlook figures should therefore be assessed separately from the completed-quarter results reported in the release.
