Microsoft Q4 FY2026 Results: Azure +43%, Capex and the Call

Share reaction

▲ +14.7%Jul 28 → Jul 30 · #2 of 8 this season

The gist

Microsoft’s stock jumped 14.7% following its earnings call, as revenue rose 17.8% year-over-year to $90.01B, beating analyst expectations of about $87.7B, alongside non-GAAP diluted earnings per share of $4.74 that topped consensus of about $4.24 by 11.8%. The surge reflected investor relief that heavy artificial intelligence investments are rapidly translating into top-line sales. The company’s Intelligent Cloud division drove the outperformance, climbing 31.6% year-over-year to $39.31B on the back of 43% growth in Azure. Management explained that customer demand continues to outpace available data center capacity, enabling extra cloud infrastructure brought online during the quarter to be monetized immediately rather than sitting underutilized.

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Revenue$90.0B+18% y/y

Operating income$40.6B+18% y/y

Net income$35.8B+31% y/y

Share price, 3 months, log scaleline: call Jul 29

Full report: 8 sectionsthe first sentence of each section is public, the rest with a free account

🔒Takeaways from the whole briefMicrosoft posted a strong Q4 FY2026, with revenue of $90.0 billion, non-GAAP EPS of $4.74, and Azure growth of 43%.

🔒Guidance qualityManagement effectively initiated FY2027 with a strong near-term guide: Azure at about 45% growth excluding foreign-exchange swings, Microsoft 365 Commercial cloud at about 16% on its adjusted basis and 15% as reported, and another year of double-digit revenue and operating income growth.

🔒Capital allocationMicrosoft is deploying cash with growth first and shareholder returns second.

🔒Accounting qualityThe annual revenue and earnings per share figures quoted on the call match the filed annual report, and operating cash flow of $55.4 billion was well above net income of $35.8 billion, so the core earnings look cash-backed.

🔒Quarter-to-quarter continuityThe big multi-quarter change is that Microsoft's FY2026 AI story moved from promise to proof in Q4 FY2026.

🔒Earnings scorecardResults against expectations, line by line

🔒Analyst Q&AWhat analysts asked and how concretely management answered

🔒Management toneSell-side analysts welcomed Microsoft's fiscal fourth-quarter 2026 report after revenue of $90.0 billion and adjusted earnings per share of $4.74 both topped consensus (barchart.com).

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Questions and answers

What did Microsoft report for Q4 FY2026?

Revenue: $90.0B; Operating income: $40.6B; Net income: $35.8B.

How did Microsoft shares react?

Up 14.7%: from the close on Jul 28, 2026 (before call day) to the close on Jul 30, 2026. That is #2 of 8 companies this season.

What is in the full report?

Takeaways from the whole brief, Guidance quality, Capital allocation, Accounting quality, Quarter-to-quarter continuity, Earnings scorecard, Analyst Q&A, Management tone.

How to read it

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← NewerGrupa Kęty · Q2 2026▼ −4.7%