Microsoft reported fourth-quarter fiscal 2026 revenue of $90 billion, up 18% year-over-year, or 17% in constant currency. Operating income increased 18% to $40.6 billion.
Net income rose 31% on a GAAP basis to $35.8 billion, and increased 22% on a non-GAAP basis to $35.3 billion, excluding the impact of investments in OpenAI. Diluted earnings per share were $4.81, up 32% on a GAAP basis, and $4.74, up 23% on a non-GAAP basis.
Microsoft said several discrete items benefited results relative to its April guidance, including a $3.2 billion gain from its investment in Anthropic and lower-than-expected expenses tied to its Voluntary Retirement Program, partially offset by severance expenses and impairment charges in Xbox. Combined, these items added $0.27 to diluted earnings per share.
Microsoft Cloud revenue reached $59.3 billion, up 27% year-over-year. Commercial remaining performance obligation increased 84% to $678 billion. Revenue in Productivity and Business Processes was $37.8 billion, up 14%, with Microsoft 365 Commercial cloud revenue up 14% on a reported basis and LinkedIn revenue up 12%.
Revenue in Intelligent Cloud was $39.3 billion, up 32%, driven by Azure and other cloud services revenue growth of 43%. Revenue in More Personal Computing was $12.9 billion, down 4%, as Windows OEM and Devices revenue fell 7% and Xbox content and services revenue declined 10%. Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.
For the full 2026 fiscal year, Microsoft reported revenue of $331.8 billion, up 18%, and operating income of $155.2 billion, up 21%. Net income rose 31% on a GAAP basis to $133.7 billion, and diluted earnings per share increased 32% to $17.95.
KEY QUOTES:
We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results. 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.
Satya Nadella, Chairman and CEO of Microsoft
We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year.
Amy Hood, Executive Vice President and CFO of Microsoft
