Microsoft Fiscal Year 2026 Q4 Results:
Revenue was $90.0 billion, up 18% year-over-year; adjusted EPS was $4.74, up 23% year-over-year.
Free cash flow was $19.6 billion, down 23%.
Business Highlights
Microsoft Cloud revenue was $59.3 billion, up 27%; commercial remaining performance obligations grew 84% to $678 billion.
Productivity and Business Processes revenue was $37.8 billion, up 14%, with the following key highlights:
· On an adjusted basis, Microsoft 365 Commercial Cloud revenue grew 16% (the prior-year period benefited from a two-percentage-point mid-period revenue recognition adjustment); on a reported basis, Microsoft 365 Commercial Cloud revenue grew 14%.
· Microsoft 365 Consumer Cloud revenue grew 24% (up 22% on a constant currency basis).
· LinkedIn revenue grew 12% (up 10% on a constant currency basis).
· Dynamics 365 revenue grew 13% (up 12% on a constant currency basis).
Intelligent Cloud revenue was $39.3 billion, an increase of 32% year-over-year (31% growth on a constant currency basis), with key business highlights as follows:
· Azure and other cloud services revenue grew by 43%
More Personal Computing revenue was $12.9 billion, down 4% (down 5% on a constant currency basis), with key business highlights as follows:
· Windows OEM and devices revenue declined by 7%
· Xbox content and services revenue declined by 10%
· Search advertising revenue, excluding traffic acquisition costs, increased by 10% (9% growth on a constant currency basis)
Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2026.
Fiscal Year 2026 Results
Microsoft Corporation today announced its financial results for the fiscal year ended June 30, 2026, compared with the same period in the prior fiscal year:
· Revenue reached $331.8 billion, up 18% (16% growth on a constant currency basis)
· Revenue was $155.2 billion, an increase of 21% (up 19% on a constant currency basis).
· Net income was $133.7 billion, up 31% under U.S. Generally Accepted Accounting Principles (GAAP) and up 22% on a non-GAAP basis (up 20% on a constant currency basis).
· Diluted earnings per share were $17.95, up 32% under U.S. GAAP and up 22% on a non-GAAP basis (up 21% on a constant currency basis).
· Non-GAAP results exclude the impact of the investment in OpenAI; see the “Non-GAAP Definitions” section below for details.
Satya Nadella stated:
"We are pushing the frontier of the cost-to-outcome curve, ensuring every customer can translate tokens into business outcomes. This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot paid seats exceeded 30 million, reflecting our customers’ trust in our ability to drive their AI transformation."
Amy Hood stated:
"We ended the fiscal year with a strong quarter, delivering Microsoft Cloud revenue of $59.3 billion, an increase of 27% year-over-year."
Editor/Liam