Microsoft 8-K
PositiveEarningsGuidance deferred to the call
Azure and AI drove cloud growth, while More Personal Computing declined.
Filed 2026-07-29 16:04 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results, with guidance to be provided on the earnings call. Microsoft reported strong cloud and AI-driven growth, while More Personal Computing revenue declined. Azure and other cloud services revenue rose 43% in Q4, and Azure revenue exceeded $100B for FY2026.
Key Figures
| Metric | Q4 2026 | Q4 2025 | Y/Y |
|---|---|---|---|
| Revenue | $90.0B | $76.4B | 18% |
| Operating income | $40.6B | $34.3B | 18% |
| Net income, GAAP | $35.8B | $27.2B | 31% |
| Net income, non-GAAP (OpenAI-adjusted) | $35.3B | $28.8B | 22% |
| Diluted EPS, GAAP | $4.81 | $3.65 | 32% |
| Diluted EPS, non-GAAP (OpenAI-adjusted) | $4.74 | $3.86 | 23% |
| Operating cash flow | $55.4B | $42.6B | 30% |
| FCF (operating cash flow less property and equipment additions) | $19.6B | $25.6B | (23)% |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $332B | $282B | 18% |
| Operating income | $155B | $129B | 21% |
| Net income, GAAP | $134B | $102B | 31% |
| Net income, non-GAAP (OpenAI-adjusted) | $129B | $105B | 22% |
| Diluted EPS, GAAP | $17.95 | $13.64 | 32% |
| Diluted EPS, non-GAAP (OpenAI-adjusted) | $17.28 | $14.13 | 22% |
| Operating cash flow | $183B | $136B | 34% |
| FCF (operating cash flow less property and equipment additions) | $67.0B | $71.6B | (6.5)% |
- Microsoft Cloud revenue was $59.3B, up 27%; commercial remaining performance obligation rose 84% to $678B. Productivity and Business Processes revenue grew 14% to $37.8B, Intelligent Cloud grew 32% to $39.3B, and More Personal Computing fell 4% to $12.9B.
- Discrete items benefited Q4 diluted EPS by $0.27, including a $3.2B gain from the Anthropic investment and lower-than-expected Voluntary Retirement Program expenses, partly offset by severance and Xbox impairment charges.
- Microsoft returned $10.2B to shareholders in Q4. Cash-flow statements show $4.58B of Q4 and $22.3B of FY share repurchases; shares outstanding were 7.427B at 6/30/2026 vs 7.434B a year earlier. Property and equipment additions were $35.8B in Q4 and $115.9B for FY2026.
Guidance
Guidance to be given on the earnings call.
Investor Takeaways
- Watch the outlook provided on the earnings call, particularly its implications for continued cloud and AI growth.
- Monitor conversion of the $678B commercial remaining performance obligation and whether Azure’s growth continues.
The summary is written by an AI model reading the filing.
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