Microsoft 2026 Q4 earnings: New Azure revenue milestone as AI relationships impact performance

Microsoft reported Q4 2026 financial performance today with earnings per share of $4.81 on revenue of $90 billion, exceeding analyst estimates.

In announcing the results, CEO and chairman Satya Nadella noted that Azure revenue surpassed $100 billion for the first time and that Microsoft 365 Copilot reached over 30 million paid seats.

 “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,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business highlights announced by the company include:

• Microsoft Cloud quarterly revenue of $59.3 billion, up 27%. 
• Azure and other cloud services revenue growth of 43%
• Dynamics 365 revenue increased 13%
• Microsoft 365 Commercial revenue growth of 14% on a reported basis, but 16% when adjusted to prior year comparable points.

The company also noted positive impact of their investment in Anthropic, which increased by $3.2 billion, and lower-than-expected expenses related to the Voluntary Retirement Program. 

Last quarter, Microsoft reported earnings per share of $5.16 on revenue of $82.9 billion, exceeding analyst estimates.

Dynamics 365 revenue grew 22% last quarter and 23% a year ago, compared to 13% this quarter.

Full year revenue for 2026 was $331.8 billion, with earnings per share of $17.95, up 32% from 2025. Non-GAAP earnings and income for the year were lower than GAAP, caused by investments in OpenAI that reduced revenue by $4.9 billion and EPS by $.67 billion, the company reported.

A year ago, Microsoft reported FY2025 Q4 earnings per share of $3.65 on revenue of $76.4 billion, exceeding analyst estimates. Full year revenue for FY2025 was $281.7 billion, with earnings per share of $13.64, up 16% from 2024.