EarningsQ4 2026 Earnings Report
MX:MSFT Q4 2026 EPS Results
Actual EPS$81.25
Consensus EPS$72.66
Beat/MissBeat by +$8.59
One Year Ago EPS$62.57
MX:MSFT Q4 2026 Revenue Results
Actual Revenue$1.54T
Expected Revenue$1.50T
Beat/MissBeat by +$40.92B
YoY Revenue Growth+17.75%
Earnings Announcement Details
QuarterQ4 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:MSFT Upcoming Earnings
Microsoft's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:MSFT Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong top-line and cloud momentum—record annual revenue, significant Azure and Microsoft Cloud growth, rapid customer adoption of AI products (Copilot, Foundry, Fabric), notable efficiency gains from internal models and silicon, and robust cash generation. The main negatives were declines in More Personal Computing (Windows/OEM and Xbox), substantial near-term capital spending and component price pressure, and margin mix effects from investing heavily in AI infrastructure. Overall, the strengths in cloud, AI platform and product monetization materially outweigh the operational and near-term cost/CapEx challenges.Company Guidance
Record Fiscal Year Revenue
Annual revenue surpassed $331 billion, up 18% year-over-year, with operating income increasing 21% to over $155 billion.
Microsoft Cloud and Azure Growth
Microsoft Cloud revenue exceeded $214 billion, up 27% year-over-year; Azure surpassed $100 billion in revenue, up 41% year-over-year, and Azure and other cloud services revenue grew 43% in the quarter.
Strong Quarterly Revenue and EPS
Quarterly revenue was $90 billion, up 18% (17% in constant currency); adjusted diluted EPS was $4.74, an increase of 23% (adjusted for OpenAI impact).
Rapid Expansion of AI Infrastructure and Capacity
Added 31 new data centers across five continents this quarter (88 added this fiscal year); added another gigawatt of capacity this quarter; reduced dock-to-live times for new GPUs in largest regions by nearly 50%; on track to roughly double overall capacity in two years.
Platform and Model Momentum
Broad model catalog of over 11,000 models and a 5x increase since the start of the year in customers building with multiple providers; major investments in first-party silicon (Maia 200) showing 30% better performance per dollar and 40% better performance per watt for MAI models.
Foundry, Fabric and Agent Platform Adoption
Foundry customers reached 100,000 with revenue more than doubling year-over-year; over 40,000 paid Fabric customers (up >60% YoY); 17,000 customers use both Foundry and Fabric (up 60% YoY); Foundry customers at 1T token annualized run rate increased 4x YoY; Agent 365 registered nearly 40 million agents in two months.
Microsoft 365 Copilot Traction
Over 30 million paid Microsoft 365 Copilot seats with net seat adds more than doubling sequentially; user satisfaction scores doubled over three quarters; latency cut 25% this quarter; conversations per user nearly doubled year-over-year; large deployments (e.g., NHS England 505,000 seats, EY E7 to 400,000).
Developer and GitHub Momentum
GitHub has 225 million users and GitHub Copilot has 50 million users; Copilot revenue accelerated over 60% quarter-over-quarter following the move to usage-based pricing.
Significant Efficiency and Cost Improvements from MAI Models
Reported efficiency gains across model implementations: 89% reduction in GPU costs in Dynamics 365 with MAI-Voice-2-Flash, up to 84% reduced GPU costs in PowerPoint with MAI-Image-2.5, and MAI-Code-1-Flash achieving higher code acceptance rates and 10% lower median token usage.
Strong Cash Generation and Capital Deployment
Cash flow from operations was $55.4 billion, up 30% year-over-year; free cash flow was $19.6 billion; returned $10.2 billion to shareholders in the quarter and over $43 billion for the full fiscal year.
Commercial Bookings and RPO Strength
Commercial bookings grew 18% (excluding OpenAI impact); commercial Remaining Performance Obligation (RPO) grew 84% to $678 billion, and grew 25% excluding OpenAI.
Sector-Specific Momentum (Databases, Analytics, Healthcare)
PostgreSQL revenue up 55%, accelerating for the third consecutive quarter; over 40,000 Fabric customers (up >60% YoY); on pace to automate over 100 million patient encounters this calendar year, including 28 million this quarter (2x YoY).
MX:MSFT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed