Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Microsoft (MSFT): Q4 FY2026 results
Microsoft reported fiscal fourth quarter results after the close on Wednesday 29 July.
Revenue rose 18 percent to $90.0 billion, ahead of the $87.6 billion consensus. GAAP diluted earnings per share of $4.81 rose 32 percent. Non-GAAP EPS of $4.74 excludes the OpenAI investment impact and compares with a $4.24 estimate, though the two are not measured on the same basis. Microsoft disclosed that discrete items delivered a benefit of $0.27 per share against its April guidance, including a $3.2 billion gain on its Anthropic investment, offset by severance and Xbox impairments.
| Metric | Actual | Consensus |
| Revenue | $90.0bn | $87.6bn |
| Azure growth (cc) | 43% | 40% |
| Microsoft Cloud revenue | $59.3bn | $58.7bn |
| Q1 FY27 revenue guidance | $89.85 to 90.95bn | $89.7bn |
Azure did the work. Azure and other cloud services grew 43 percent in constant currency, against roughly 40 percent expected, accelerating from 40 percent in the March quarter. Intelligent Cloud revenue rose 32 percent to $39.3 billion. Productivity and Business Processes grew 14 percent to $37.8 billion, and More Personal Computing fell 4 percent to $12.9 billion. Microsoft Cloud revenue reached $59.3 billion, up 27 percent. Commercial remaining performance obligation rose 84 percent year on year to $678 billion. Satya Nadella said Azure passed $100 billion of annual revenue for the first time in fiscal 2026 and that Microsoft 365 Copilot reached over 30 million paid seats.
Spending drew the usual attention. Capital expenditure including finance leases reached $41 billion, up 69 percent, and free cash flow fell 23 percent to $19.6 billion. Microsoft extended the useful life of office and data centre buildings to 25 years from 15, which cuts reported calendar 2026 capex to roughly $175 billion from the $190 billion previously indicated. Amy Hood reiterated the underlying spending plan and pointed to further growth in fiscal 2027, citing “demand signals across our portfolio”. Lease commitments not yet commenced stood at $329.1 billion, up from $196.6 billion.
Hood guided September quarter revenue to $89.85 to $90.95 billion and Azure growth of 45 percent in constant currency, against 41.4 percent consensus. Shares closed down 0.7 percent at $390.54, then rose 7.8 percent after hours to $420.99. The stock remains down 19 percent for calendar 2026.
