Companies / Results
Microsoft closed fiscal 2026 with $90.0 billion in quarterly revenue as Azure growth reached 43%.
Cloud and AI demand drove the quarter, but investment gains and restructuring items complicate a simple EPS comparison.
Sources
Microsoft fiscal 2026 fourth-quarter earnings release and official earnings call materials, published July 29, 2026.
Microsoft reported $90.007 billion of revenue for the quarter ended June 30, 2026, up 18% year over year. GAAP operating income was $40.603 billion, also up 18%, and GAAP diluted EPS was $4.81, up 32%.
Microsoft Cloud revenue rose 27% to $59.3 billion. Intelligent Cloud revenue increased 32% to $39.306 billion, including 43% growth in Azure and other cloud services. Productivity and Business Processes increased 14% to $37.847 billion, while More Personal Computing fell 4% to $12.854 billion.
The segment split shows where the growth was concentrated. Intelligent Cloud added more than $9.4 billion of revenue from the year-earlier quarter, while More Personal Computing declined by roughly $0.6 billion. Microsoft also reported commercial remaining performance obligation of $678 billion, up 84%. That backlog measure reflects contracted commitments and timing assumptions; it is not current-quarter revenue.
Profit includes items that should stay visible. Microsoft said a $3.2 billion gain on its Anthropic investment, lower-than-expected voluntary-retirement expenses, severance and Xbox impairment charges together benefited diluted EPS by $0.27 relative to the guidance it had issued in April. The company’s non-GAAP presentation separately excludes the impact of investments in OpenAI. GAAP and non-GAAP results answer different questions and should not be blended.
For the following quarter, management gave total-company revenue guidance of $89.85 billion to $90.95 billion. That is a forward-looking range, not a reported result. The company also guided Productivity and Business Processes revenue to $36.7 billion to $37.0 billion. Both ranges are management estimates subject to the risks identified in the release.
A backlog is not the same as revenue
Remaining performance obligation is contracted business expected to be recognized over time. Revenue is what accounting rules allow the company to recognize in the current period. A large backlog can support visibility without being current sales.
Keep the investment and restructuring bridge attached
GAAP diluted EPS of $4.81 includes discrete investment and expense effects that Microsoft quantified as a $0.27 benefit against prior guidance. Non-GAAP EPS uses a separate stated adjustment for OpenAI investments.
What we do not know
The release does not establish how long 43% Azure growth will persist or how much contracted backlog will become revenue in any single quarter beyond the company’s disclosed schedule. This article does not infer valuation or price direction.
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