- Microsoft reported adjusted earnings of $4.74 per share on revenue of $90.01 billion for the quarter ended June 30, exceeding analysts' expectations of $4.24 per share and $87.62 billion in revenue.
- Microsoft shares jumped about 7% on Thursday morning after the software company reported fiscal fourth-quarter results that topped Wall Street estimates and forecast continued strength in its cloud business.
- Quarterly revenue rose 18% from a year earlier, while net income increased to $35.77 billion from $27.23 billion.
- Microsoft's Intelligent Cloud segment generated $39.31 billion in revenue, up 31.6% year over year, as Azure revenue growth accelerated to 43%.
- The company said Azure revenue exceeded $100 billion for fiscal 2026, while commercial remaining performance obligations rose 8% sequentially to $678 billion.
- Microsoft also projected first-quarter revenue of $89.85 billion to $90.95 billion, ahead of analysts' estimates.
- Microsoft maintained its fiscal 2026 capital spending outlook at about $175 billion despite continued investment in artificial intelligence infrastructure.
- Quarterly capital expenditures and finance leases rose 69% to $41 billion, while free cash flow declined 23% to $19.64 billion.
- The company said it expects to remain free cash flow positive in fiscal 2027 as demand for Azure and AI services continues to grow.
Microsoft's fiscal fourth-quarter results revealed adjusted earnings of $4.74 per share on $90.01 billion in revenue, exceeding analysts' expectations of $4.24 per share and $87.62 billion in revenue. This marks an 18% increase in quarterly revenue from the previous year, with net income rising to $35.77 billion from $27.23 billion.13
The company's Intelligent Cloud segment generated $39.31 billion in revenue, reflecting a 31.6% year-over-year increase. Azure's revenue growth accelerated to 43%, contributing significantly to the overall performance. Microsoft also reported that Azure revenue is expected to exceed $100 billion for fiscal 2026, with commercial remaining performance obligations rising 8% sequentially to $678 billion.457
Looking ahead, Microsoft projected first-quarter revenue between $89.85 billion and $90.95 billion, surpassing analysts' estimates. Despite a 69% increase in quarterly capital expenditures to $41 billion and a 23% decline in free cash flow to $19.64 billion, the company maintained its fiscal 2026 capital spending outlook at about $175 billion. Microsoft expects to remain free cash flow positive in fiscal 2027 as demand for Azure and AI services continues to grow.689
“Quarterly revenue rose 18% year over year, with net income increasing to $35.77 billion from $27.23 billion. The company also projected first-quarter revenue between $89.85 billion and $90.95 billion, ahead of analysts' estimates, while maintaining a capital spending outlook of about $175 billion.”
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