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When Were the Microsoft Q4 FY2026 Earnings Released?Microsoft announced its fiscal fourth-quarter 2026 earnings after the U.S. market closed on Wednesday, July 29, 2026.The quarter covered the three mWhen Were the Microsoft Q4 FY2026 Earnings Released?Microsoft announced its fiscal fourth-quarter 2026 earnings after the U.S. market closed on Wednesday, July 29, 2026.The quarter covered the three m

Microsoft FY2026 Q4 Earnings Beat Estimates as Azure Growth Accelerates and MSFT Stock Jumps

#US Stocks

Q$0.022335+6.66%

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Author: James Mitchell

2026/07/30 12:55

Key Takeaways

Microsoft released its fiscal fourth-quarter 2026 earnings on July 29. Revenue and adjusted earnings beat Wall Street estimates, Azure growth accelerated to 43%, and Microsoft issued stronger-than-expected cloud guidance. MSFT stock rose more than 8% in extended trading as the results provided clearer evidence that the company’s heavy AI spending is supporting revenue growth.

When Were the Microsoft Q4 FY2026 Earnings Released?

Microsoft announced its fiscal fourth-quarter 2026 earnings after the U.S. market closed on Wednesday, July 29, 2026.

The quarter covered the three months ended June 30. Although Microsoft officially calls the report FY2026 Q4 earnings, it also corresponds to the April-to-June 2026 period and may appear in searches as Microsoft Q2 2026 earnings.

Investors can review Microsoft’s official FY2026 Q4 earnings release for the full financial statements and business metrics.

Did Microsoft Beat Earnings Expectations?

Microsoft reported quarterly revenue of $90.0 billion, up 18% year over year. This was above Wall Street’s estimate of approximately $87.6 billion.

Adjusted earnings were $4.74 per share, compared with analysts’ expectation of about $4.24. GAAP earnings were $4.81 per diluted share, while GAAP net income increased 31% to $35.8 billion.

The quarter also included a $3.2 billion gain related to Microsoft’s Anthropic investment. Microsoft therefore provided adjusted results excluding the effect of its OpenAI investments to give investors a clearer view of underlying operating performance.

Azure Growth Accelerated to 43%

Azure and other cloud-services revenue increased 43% year over year, exceeding the market consensus of approximately 40%.

Microsoft’s Intelligent Cloud segment generated $39.3 billion in revenue, up 32%, while total Microsoft Cloud revenue rose 27% to $59.3 billion.

Microsoft also said Azure generated more than $100 billion in annual revenue for the first time. Commercial remaining performance obligations, a measure of contracted future revenue, increased 84% to $678 billion. The backlog rose from $627 billion in the previous quarter, with the sequential increase driven by customers outside the largest U.S. AI model developers.

Microsoft 365 Copilot Reached 30 Million Paid Seats

Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million in the previous quarter and ahead of analysts’ estimates.

This metric matters because it provides a more direct measure of enterprise AI adoption than general statements about Copilot usage. Growth in paid seats suggests Microsoft is converting part of its AI investment into recurring software revenue, rather than relying only on demand for Azure computing capacity.

Microsoft CapEx Reached $41 Billion

Microsoft’s quarterly capital expenditure, including finance leases, reached approximately $41 billion, more than 70% higher than a year earlier. The spending primarily supported data centers, AI infrastructure and cloud capacity.

Despite the increase, Microsoft generated $19.6 billion in free cash flow. This was down 23% year over year but remained well above the approximately $13.4 billion expected by analysts.

Microsoft now expects reported calendar-year 2026 capital expenditures of around $175 billion, below its earlier $190 billion figure. However, the reduction mainly reflects an accounting change that extends the assumed life of certain long-term data-center leases from 15 years to 25 years. The company said its underlying infrastructure plans had not changed.

What Is Microsoft’s Guidance for FY2027 Q1?

Microsoft forecast fiscal first-quarter 2027 revenue at a midpoint of approximately $90.4 billion, above the market consensus of $89.7 billion.

The company also expects Azure revenue to grow about 45% in constant currency, compared with analysts’ expectation of around 41%. This would represent another acceleration from the 43% growth reported in the June quarter.

Microsoft expects reported capital expenditure of approximately $50 billion in the September quarter as it continues expanding cloud and AI capacity.

Windows and Xbox Remained Weak

Not every part of Microsoft’s earnings report was strong.

Revenue from More Personal Computing fell 4% to $12.9 billion. Windows OEM and Devices revenue declined 7%, while Xbox content and services revenue fell 10%.

These businesses are now much less important to Microsoft’s overall growth than Azure, Microsoft 365 and enterprise AI. However, continued weakness in gaming and consumer devices could remain a drag on the company’s smaller business segments.

Why Did Microsoft Stock Rise After Earnings?

Microsoft stock gained more than 8% in after-hours trading following the FY2026 Q4 earnings release.

The market reaction was driven by three factors: Azure growth exceeded expectations, fiscal Q1 cloud guidance was stronger than forecast, and Microsoft remained strongly free-cash-flow positive despite record AI infrastructure spending.

The earnings report gave investors clearer evidence that Microsoft’s AI investment is translating into cloud revenue, enterprise contracts and paid Copilot adoption.

What Should Investors Watch Next?

The main question is whether Microsoft can maintain Azure growth above 40% while continuing to expand AI capacity.

Investors should also watch Microsoft 365 Copilot paid seats, the $678 billion commercial backlog, free cash flow and the effect of continued capacity constraints. Microsoft has said cloud demand remains higher than available infrastructure in some areas, which means future growth will depend partly on how quickly new data-center capacity becomes operational.

Explore Microsoft and Stock-Related Markets on MEXC

Microsoft’s earnings allow market participants to follow changes in Azure growth, AI infrastructure spending and enterprise software demand.

Users can register for access to U.S. stocks and review the U.S. stocks trading guide. MEXC also provides access to U.S. stock-related futures markets, together with a futures trading tutorial.

FAQ

Did Microsoft beat Q4 FY2026 earnings estimates?

Yes. Microsoft reported adjusted EPS of $4.74 and revenue of $90.0 billion, above Wall Street expectations of approximately $4.24 and $87.6 billion.

How much did Azure grow?

Azure and other cloud-services revenue increased 43% year over year. Microsoft expects approximately 45% constant-currency Azure growth in the following quarter.

Why did MSFT stock rise after earnings?

MSFT stock rose because Azure growth, total revenue, earnings and forward cloud guidance all exceeded expectations, while the company continued to generate positive free cash flow.

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