Microsoft Earnings Top Estimates After Profit Jump
Microsoft earnings show a Q4 beat and FY27 double-digit guidance, highlighting Azure momentum as investors weigh heavy data-center and AI spending.
KEY TAKEAWAYS
- Following the filing, Q4 revenue was $90.0 billion, up 18.0% year over year.
- GAAP net income was $35.8 billion and GAAP diluted EPS was $4.81.
- Management forecasted double-digit revenue and operating-income growth for fiscal 2027 amid heavy data-center and AI spending.
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Microsoft Corp. (MSFT) reported fiscal fourth-quarter results on July 29, 2026, delivering Microsoft earnings that beat estimates and supported management’s forecast for double-digit revenue and operating-income growth in fiscal 2027. The company continues heavy spending on data-center and AI infrastructure.
Quarter Results and Full-Year Totals
Microsoft’s FY26 Q4 investor release showed revenue of $90.0 billion for the quarter ended June 30, 2026, up 18% year over year. Operating income rose 18% to $40.6 billion. GAAP net income increased 31% to $35.8 billion, while GAAP diluted earnings per share (EPS) climbed 32% to $4.81, with profit growth notably outpacing revenue gains.
On a non-GAAP basis, the company reported net income of $35.3 billion and diluted EPS of $4.74, both about 22% to 23% higher year over year.
For the full fiscal year 2026, Microsoft said revenue reached $331.8 billion, operating income totaled $155.2 billion, and GAAP net income was $133.7 billion, all reflecting double-digit annual growth. The company highlighted that Azure annual revenue surpassed $100 billion for the first time, marking a milestone in its cloud momentum that supports its AI and enterprise services push.
Guidance and Investment Focus
The quarterly results exceeded Street consensus, which had forecast roughly $87.6 billion in revenue and about $4.24 in EPS. Microsoft’s fiscal 2027 outlook calls for double-digit growth in both revenue and operating income, despite an unusually large capital expenditure and ongoing infrastructure build-out.
Investors are focused on whether the company’s heavy investment in data centers and AI infrastructure will translate into sustained monetization of cloud and AI services. Management presented the outlook alongside its spending plans, leaving the longer-term payoff of this record build-out as a key question for upcoming quarters.
