Microsoft has reported a strong fourth quarter and record full-year financial results for fiscal 2026, fueled by surging demand for its cloud computing and artificial intelligence (AI) services.
The company also announced that Azure generated more than $100 billion in annual revenue for the first time, marking a major milestone for its cloud business.
For the fourth quarter ended June 30, Microsoft posted revenue of $90 billion, an 18% increase from a year earlier. Operating income rose 18% to $40.6 billion, while net income jumped 31% to $35.8 billion on a GAAP basis. Diluted earnings per share increased 32% to $4.81.
On a non-GAAP basis, net income reached $35.3 billion, up 22% year over year, with diluted earnings per share rising 23% to $4.74.
Microsoft’s cloud business remained the company’s biggest growth driver during the quarter. Microsoft Cloud generated $59.3 billion in revenue, up 27% from the same period last year. Revenue from the Intelligent Cloud segment climbed 32% to $39.3 billion, while Azure and other cloud services recorded an impressive 43% year-over-year increase.
Microsoft Chairman and CEO Satya Nadella said the company continues to improve the efficiency of AI technologies while helping customers turn AI investments into measurable business outcomes.
“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation,” Nadella said.
For the full fiscal year 2026, Microsoft reported revenue of $331.8 billion, up 18% from the previous year. Operating income increased 21% to $155.2 billion, while annual net income climbed 31% to $133.7 billion. Diluted earnings per share rose 32% to $17.95.
The results underscore Microsoft’s continued leadership in the AI and cloud computing market, where growing enterprise adoption of Azure, Microsoft 365 Copilot, and other AI-powered services has significantly boosted the company’s financial performance.
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Microsoft also returned $10.2 billion to shareholders during the fourth quarter through dividends and share repurchases, reflecting the company’s strong cash generation and continued commitment to shareholder returns.
