Microsoft's quarterly revenue rose 18% to $90.0 billion. Azure and other cloud services grew 43%, and annual Azure revenue surpassed $100 billion for the first time.
Microsoft released its fiscal 2026 fourth-quarter results after the U.S. regular market closed on July 29, 2026. For the quarter ended June 30, revenue rose 18% from a year earlier to $90.007 billion. Operating income increased 18% to $40.603 billion, while GAAP net income rose 31% to $35.766 billion. Diluted GAAP earnings were $4.81 per share, up 32%.
Azure and other cloud services grew 43%
Microsoft Cloud revenue increased 27% to $59.3 billion. Revenue in the Intelligent Cloud segment reached $39.306 billion, up 32%, while Azure and other cloud services revenue increased 43%.
Microsoft did not disclose quarterly Azure revenue as a separate amount. The company said Azure revenue for the full fiscal year surpassed $100 billion for the first time. Microsoft 365 Copilot also exceeded 30 million paid seats.
Commercial remaining performance obligation, which represents contracted revenue that has not yet been recognized, increased 84% to $678 billion.
The three business segments moved in different directions
| Segment | Fiscal Q4 2026 revenue | Year-over-year change |
|---|---|---|
| Productivity and Business Processes | $37.847 billion | +14% |
| Intelligent Cloud | $39.306 billion | +32% |
| More Personal Computing | $12.854 billion | -4% |
Within More Personal Computing, Windows OEM and Devices revenue decreased 7%, and Xbox content and services revenue declined 10%. Search advertising revenue excluding traffic acquisition costs increased 10%.
Reported earnings included investment gains
Microsoft reported GAAP net income of $35.766 billion and diluted earnings of $4.81 per share. Its non-GAAP measure, which excludes the effect of investments in OpenAI, showed net income of $35.286 billion and diluted earnings of $4.74 per share.
The company said gains from its OpenAI investments increased quarterly GAAP net income by $480 million and diluted earnings by $0.07 per share.
Separately, Microsoft said several items produced a net benefit of $0.27 per diluted share compared with the guidance it issued in April. Those items included a $3.2 billion gain on its Anthropic investment and lower-than-expected costs for a voluntary retirement program, partly offset by severance costs and Xbox impairment charges.
Full-year revenue reached $331.839 billion
For the fiscal year ended June 30, Microsoft reported revenue of $331.839 billion, up 18%, and operating income of $155.237 billion, up 21%. GAAP net income increased 31% to $133.749 billion, and diluted GAAP earnings rose 32% to $17.95 per share.
Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the fourth quarter.