Microsoft Corporation
Revenue
$90B
Net Income
$36B
Microsoft Corporation
Revenue
$90B
Net Income
$36B
Microsoft Corporation
CIK: 0000789019
Earnings Analysis
Analyzed 12 of 12 reports
Performance Summary - Q2 2026bullish (80)not_provided
Reality-Based Sentiment Analysisbullish80/100
Based on actual market data, not just management spin. Weighted score: 10% management tone + 40% earnings beat/miss + 30% price action + 20% guidance accuracy.
Financial Performance Trend
Overall Analysis & Outlook
Over the past 5 quarters, Microsoft Corporation has been consistently bullish with stable guidance. Revenue has grown 59.3% during this period. The latest quarter shows bullish sentiment with neutral tone from management.
Latest Quarter Highlights:
Microsoft delivered strong fiscal 2026 results with 18% revenue growth to $331.8B and 31% net income growth to $133.7B, driven by robust cloud and AI adoption. Microsoft Cloud revenue surged 27% to $214.4B, with Azure growing 41% and commercial remaining performance obligations jumping 84% to $678B, demonstrating exceptional customer demand for AI and cloud services. However, significant capital intensification is underway with capex nearly doubling to $115.9B to support AI infrastructure, while the company navigates multiple regulatory challenges including EU AI Act compliance and U.S. antitrust scrutiny.
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q2 2026
10-K • Filed 7/29/2026
Summary
Microsoft delivered strong fiscal 2026 results with 18% revenue growth to $331.8B and 31% net income growth to $133.7B, driven by robust cloud and AI adoption. Microsoft Cloud revenue surged 27% to $214.4B, with Azure growing 41% and commercial remaining performance obligations jumping 84% to $678B, demonstrating exceptional customer demand for AI and cloud services. However, significant capital intensification is underway with capex nearly doubling to $115.9B to support AI infrastructure, while the company navigates multiple regulatory challenges including EU AI Act compliance and U.S. antitrust scrutiny.
Revenue
$90.01B
Net Income
$35.77B
Guidance
Tone
Capex
$115.95B(+79.7% YoY)
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 27% to $214.4 billion"
"Azure and other cloud services revenue increased 41% driven by demand for services across the platform with continued growth across all workloads"
"We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services"
Q1 2026
10-Q • Filed 4/29/2026
Summary
Microsoft delivered strong Q1 FY2026 results with 18% revenue growth to $82.9B driven by robust cloud and AI demand. Microsoft Cloud revenue surged 29% to $54.5B, while Azure grew 40%, demonstrating execution on AI infrastructure investments despite margin compression from AI spending. Commercial RPO doubled to $627B, signaling exceptional forward demand visibility.
Revenue
$82.89B
Net Income
$31.78B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 29% to $54.5 billion."
"Azure and other cloud services revenue increased 40% driven by demand for services across the platform with continued growth across all workloads."
"Commercial remaining performance obligation increased 99% to $627 billion."
"Total company headcount declined year-over-year."
"The investments we are making in cloud and AI infrastructure and devices will continue to increase our operating costs and may decrease our operating margins."
Q4 2025
10-Q • Filed 1/28/2026
Summary
Microsoft delivered strong Q4 FY2026 results with 17% revenue growth to $81.3B and 60% net income growth to $38.5B, driven primarily by exceptional 29% growth in Intelligent Cloud (Azure +39%) and 16% growth in Productivity and Business Processes. Commercial remaining performance obligations surged 110% to $625B, signaling robust future revenue visibility, while Microsoft Cloud revenue grew 26% to $51.5B. The company is making significant AI infrastructure investments that are currently compressing margins, but management projects continued efficiency gains and strong execution across cloud and AI services.
Revenue
$81.27B
Net Income
$38.46B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 26% to $51.5 billion."
"Commercial remaining performance obligation increased 110% to $625 billion."
"Azure and other cloud services revenue increased 39%."
Q3 2025
10-Q • Filed 10/29/2025
Summary
Microsoft delivered strong Q3 FY2026 results with 18% revenue growth to $77.7B and 24% operating income growth, driven by robust Azure growth (40%) and broad commercial momentum across Microsoft Cloud ($49.1B, +26% YoY). The company continues aggressive capital allocation with AI infrastructure investments, though margin pressure from AI scaling costs partially offset operational leverage. Management maintains neutral tone despite strong execution, with forward guidance notably absent from the 10-Q.
Revenue
$77.67B
Net Income
$27.75B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 26% to $49.1 billion...Azure and other cloud services revenue increased 40%"
"Commercial remaining performance obligation increased 51% to $392 billion"
"The investments we are making in cloud and AI infrastructure and devices will continue to increase our operating costs and may decrease our operating margins"
Q2 2025
10-K • Filed 7/30/2025
Summary
Microsoft delivered strong FY2025 results with 15% revenue growth to $281.7B and 16% net income growth to $101.8B, driven by cloud and AI momentum with Azure growing 34% and Microsoft Cloud revenue up 23% to $168.9B. The company increased capex significantly by 45% to $64.6B to support AI infrastructure scaling, demonstrating confidence in AI-driven growth opportunities. Management maintains a bullish outlook with robust cash generation ($136.2B operating cash flow) and continued investments in cloud/AI capabilities despite acknowledging near-term margin pressure from AI infrastructure build-out.
Revenue
$76.44B
Net Income
$27.23B
Guidance
Tone
Capex
$64.55B(+45% YoY)
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 23% to $168.9 billion with Azure and other cloud services revenue growth of 34%"
"We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services"
"Microsoft and OpenAI maintain a long-term strategic partnership originally established in 2019 with Microsoft as a major investor and reciprocal revenue-sharing arrangements"
Q1 2025
10-Q • Filed 4/30/2025
Summary
Microsoft delivered strong Q1 FY2025 results with 13% revenue growth to $70.1B and 18% net income growth to $25.8B, driven by robust cloud and AI adoption. Microsoft Cloud revenue surged 20% YoY to $42.4B with Azure growing 33%, benefiting significantly from AI services (16 percentage points of growth), while maintaining strong pricing power across commercial products. The company is aggressively investing in AI infrastructure and cloud capacity to capture sustained demand, with deferred revenue of $47.5B providing visibility into future performance despite margin pressure from infrastructure scaling.
Revenue
$70.07B
Net Income
$25.82B
Guidance
Tone
Partnerships
Key Quotes
"Server products and cloud services revenue increased 22% driven by Azure and other cloud services revenue growth of 33% with demand for our portfolio of services, including 16 points from our AI services."
"We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services."
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training."
Q4 2024
10-Q • Filed 1/29/2025
Summary
Microsoft delivered strong Q4 FY2025 results with 12% revenue growth to $69.6B driven by robust cloud performance (Azure +31%, AI services +157%) and solid commercial execution (M365 Commercial cloud +16%). Despite headwinds from declining gaming hardware and margin compression from AI infrastructure investments, the company maintained disciplined cost management with operating income growing 17%, demonstrating resilient profitability and strong cash generation ($56.5B operating cash flow).
Revenue
$69.63B
Net Income
$24.11B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 21% to $40.9 billion driven by demand for our portfolio of services, including 13 points from our AI services which grew 157%"
"Azure and other cloud services revenue grew 31% driven by demand for our portfolio of services"
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training"
Q3 2024
10-Q • Filed 10/30/2024
Summary
Microsoft demonstrated strong Q3 FY2025 growth with 16% revenue increase to $65.6B and 11% net income growth to $24.7B, driven by robust cloud expansion (Azure up 33%) and AI services adoption (12 points of growth). Microsoft Cloud revenue surged 22% to $38.9B, though gross margins compressed due to significant investments in AI infrastructure and datacenter scaling. Management maintains confident tone on strategic positioning while acknowledging competitive AI market intensity and ongoing regulatory challenges.
Revenue
$65.58B
Net Income
$24.67B
Guidance
Tone
Partnerships
Key Quotes
"We are investing in artificial intelligence (AI) across the entire company and infusing generative AI capabilities into our consumer and commercial offerings. We expect AI technology and services to be a highly competitive and rapidly evolving market."
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training."
"Azure and other cloud services revenue grew 33% driven by demand for our portfolio of services, including 12 points from our AI services."
Q2 2024
10-K • Filed 7/30/2024
Summary
Microsoft delivered strong full-year FY2024 results with 16% revenue growth to $245.1 billion and 22% net income growth to $88.1 billion, driven by Azure's 30% growth and Office 365 Commercial's 16% expansion, reflecting successful AI integration and cloud momentum. The company continues aggressive infrastructure investments for AI services and the $75.4 billion Activision Blizzard acquisition closed in October 2023, with operating margins expanding despite higher capex spending. However, management faces mounting regulatory headwinds including EU Digital Markets Act obligations, a $28.9 billion IRS transfer pricing challenge, and evolving AI/data protection regulations that could constrain operations and margins going forward.
Revenue
$64.73B
Net Income
$22.04B
Guidance
Tone
Capex
$44.48B(+58.1% YoY)
Partnerships
Key Quotes
"We are incurring significant costs to build and maintain infrastructure to support cloud computing and AI services. These costs will reduce the operating margins."
"We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services."
"Azure and other cloud services revenue grew 30% driven by growth in our consumption-based services."
Q1 2024
10-Q • Filed 4/25/2024
Summary
Microsoft delivered strong Q1 FY2024 results with revenue of $61.9B (+17% YoY) and net income of $21.9B (+20% YoY), driven by robust cloud growth with Azure up 31% and Microsoft Cloud revenue increasing 23% to $35.1B. The company is making significant investments in AI infrastructure and cloud capacity while maintaining pricing power across core businesses including Office 365 Commercial (+15%) and Dynamics 365 (+23%), though management acknowledges increased capex will pressure margins going forward.
Revenue
$61.86B
Net Income
$21.94B
Guidance
Tone
Partnerships
Key Quotes
"We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services."
"Microsoft Cloud revenue increased 23% to $35.1 billion."
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training."
Q4 2023
10-Q • Filed 1/30/2024
Summary
Microsoft delivered strong Q4 FY2024 results with 18% revenue growth to $62.0B and 33% operating income growth, driven by robust Azure growth (30%), Office 365 Commercial momentum (17%), and the Activision Blizzard acquisition impact. Microsoft Cloud revenue surged 24% to $33.7B, demonstrating continued strength in the company's core cloud strategy. However, significant regulatory headwinds exist, including a $28.9B IRS tax dispute and ongoing infrastructure capex investments for AI services are pressuring margins.
Revenue
$62.02B
Net Income
$21.87B
Guidance
Tone
Key Quotes
"Microsoft Cloud revenue increased 24% to $33.7 billion... Azure and other cloud services growth of 30%"
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure."
"On October 13, 2023, we completed our acquisition of Activision Blizzard for a total purchase price of $75.4 billion"
Q3 2023
10-Q • Filed 10/24/2023
Summary
Microsoft delivered strong Q3 FY2024 results with revenue growth of 13% to $56.5B and net income growth of 27% to $22.3B, driven by robust cloud expansion (Microsoft Cloud +24% to $31.8B) and Azure growth of 29%. The company is aggressively investing in AI infrastructure and completed the $61.8B Activision Blizzard acquisition, signaling confidence in future gaming and AI monetization despite near-term regulatory headwinds and elevated capex requirements.
Revenue
$56.52B
Net Income
$22.29B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 24% to $31.8 billion."
"Server products and cloud services revenue increased 21% driven by Azure and other cloud services growth of 29%."
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure."
Sector Comparison
How MSFT performs vs Technology sector and Cloud Infrastructure peers
Sector Ranking (Technology)
Category Ranking (Cloud Infrastructure)
Key Metrics vs Averages
MSFT
$90,007M
Cloud Infrastructure Avg
$42,380.34M
Technology Avg
$34,494.1M
MSFT
79.7%
Cloud Infrastructure Avg
40.0%
Technology Avg
40.7%
Guidance: not_provided • Tone: neutral