Microsoft Corporation (MSFT) Announced Q4 2026 Earnings on July 29, 2026, Reporting "revenue was $90 billion, up 18% and 17% in constant currency" for the quarter.

For the fourth quarter of fiscal year 2026, Microsoft Corporation reported that "revenue was $90 billion, up 18% and 17% in constant currency" for the quarter.

Gross margin dollars increased 15% and operating income increased 18% for the quarter.

Earnings per share was "$4.74, an increase of 23% when adjusted for the impact from our investment in OpenAI" for the quarter.

Company gross margin percentage was "67%, down year-over-year" for the quarter, while operating margins "increased slightly year-over-year to 45%" for the quarter.

For the full fiscal year 2026, annual revenue surpassed "$331 billion, up 18%," Microsoft Cloud surpassed "$214 billion, up 27%," and Azure surpassed "$100 billion, up 41%." Cash flow from operations was "$55.4 billion, up 30%" for the quarter, while capital expenditures were "$41 billion" for the quarter.

Chief Executive Officer Satya Nadella outlined the company's two core goals going forward: "ensuring AI empowers every person, amplifying their agency, and ambition; and second, empowering every organization to build their own continuous learning loop and ensuring that they don't outsource their core IP." To meet accelerating demand, Microsoft added "31 new data centers across 5 continents this quarter" and "another gigawatt of capacity this quarter" to expand its footprint. In product developments, Microsoft 365 Copilot paid seats are "now over 30 million, with net seat adds more than doubling quarter-over-quarter," and GitHub Copilot has "50 million users" with Copilot revenue accelerating "over 60% quarter-over-quarter." The company also launched Microsoft Frontier Co., which will embed "6,000 industry and engineering experts with customers" to co-design AI systems.

Microsoft also announced a partnership with Mistral to bring its models to Microsoft Sovereign Cloud.

For the first quarter of fiscal year 2027, Microsoft expects total company revenue to be "between USD 89.85 billion and USD 90.95 billion or growth of 16% to 17%." Azure revenue growth for the first quarter is expected to be "approximately 45% in constant currency," and capital expenditures are expected to be "over $50 billion." For the full fiscal year 2027, Microsoft expects "another fiscal year of double-digit revenue and operating income growth," while capital expenditures "will grow year-over-year." Operating margins for the full fiscal year 2027 are expected to be "down less than 1 point."