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 FY2026 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%, reflecting exceptional demand for AI services. The company is making massive capital investments in infrastructure ($115.9B capex, +80% YoY) and AI capabilities while maintaining pricing power and expanding profitability, though margins are being pressured by continued AI infrastructure investments.
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q2 2026
10-K • Filed 7/29/2026
Summary
Microsoft delivered strong FY2026 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%, reflecting exceptional demand for AI services. The company is making massive capital investments in infrastructure ($115.9B capex, +80% YoY) and AI capabilities while maintaining pricing power and expanding profitability, though margins are being pressured by continued AI infrastructure investments.
Revenue
$90.01B
Net Income
$35.77B
Guidance
Tone
Capex
$115.95B(+79.6% 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"
"Commercial remaining performance obligation increased 84% to $678 billion, indicating strong future revenue visibility"
"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"
"We have made and are continuing to make significant capital and operational investments to develop, train, deploy, and support AI models and related cloud-based services, including building and expanding datacenters"
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 Microsoft Cloud expansion (29% growth to $54.5B) and Azure strength (40% growth). Commercial remaining performance obligation surged 99% to $627B, signaling robust future revenue visibility. The company is investing heavily in AI infrastructure despite margin pressure, with headcount declining while R&D spending increased 9% on AI talent and compute capacity.
Revenue
$82.89B
Net Income
$31.78B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 29% to $54.5 billion. Commercial remaining performance obligation increased 99% to $627 billion."
"Azure and other cloud services revenue increased 40% driven by demand for services across the platform with continued growth across all workloads."
"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 $81.3 billion, driven by robust cloud and AI adoption. Microsoft Cloud revenue grew 26% to $51.5 billion, with Azure accelerating 39%, while commercial remaining performance obligation surged 110% to $625 billion, signaling exceptional customer demand. Net income of $38.5 billion benefited from $7.6 billion in OpenAI investment gains, though adjusted net income (excluding OpenAI) still grew 23%, demonstrating underlying operational strength despite significant AI infrastructure investments pressuring margins.
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% driven by demand for our portfolio of services with continued growth across all workloads."
"We are investing in artificial intelligence (AI) across the entire company and infusing generative AI capabilities into our consumer and commercial offerings. AI technology and services are a highly competitive and rapidly evolving market."
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 expansion (40% growth) and Microsoft Cloud revenue reaching $49.1B (+26%). The company is making substantial investments in AI infrastructure while maintaining pricing power and expanding cloud margins, though near-term profitability is being pressured by AI scaling costs and a major $4.1B mark-to-market loss on OpenAI equity investments.
Revenue
$77.67B
Net Income
$27.75B
Guidance
Tone
Partnerships
Key Quotes
"Azure and other cloud services revenue grew 40% driven by demand for our portfolio of services with continued growth across all workloads."
"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 fiscal 2025 results with 15% revenue growth to $281.7 billion and 16% net income growth to $101.8 billion, demonstrating robust execution across all three segments. Microsoft Cloud revenue accelerated 23% to $168.9 billion, driven by Azure's 34% growth as AI infrastructure demand surges, while Microsoft 365 Commercial cloud and Dynamics 365 also showed healthy double-digit growth. The company is making significant investments in cloud and AI infrastructure with capex surging 45% to $64.6 billion, reflecting confidence in long-term AI opportunities despite margin pressure from scaling.
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."
"Azure and other cloud services revenue grew 34% driven by demand for our portfolio of 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."
Q1 2025
10-Q • Filed 4/30/2025
Summary
Microsoft delivered strong Q1 FY2025 results with 13% revenue growth to $70.1 billion and 18% net income growth to $25.8 billion, driven by robust cloud and AI demand. Microsoft Cloud revenue grew 20% to $42.4 billion, with Azure growing 33% (16 points from AI services), demonstrating substantial AI monetization. However, gross margin compression from AI infrastructure scaling and elevated capex investments signal significant near-term cost headwinds despite strong pricing power and operational efficiency.
Revenue
$70.07B
Net Income
$25.82B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 20% to $42.4 billion...Azure and other cloud services revenue growth of 33%"
"Microsoft Cloud gross margin percentage decreased to 69% driven by the impact of scaling our AI infrastructure"
"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 revenue of $69.6B (+12% YoY) and net income of $24.1B (+10% YoY), driven primarily by robust cloud growth. Microsoft Cloud revenue increased 21% to $40.9B with Azure growing 31%, including 157% AI services growth. The company is aggressively investing in AI infrastructure and cloud capacity, which is pressuring gross margins but positioning the company for long-term competitive advantage.
Revenue
$69.63B
Net Income
$24.11B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 21% to $40.9 billion driven by Azure and other cloud services revenue growth of 31% with 13 points from AI services which grew 157%"
"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"
"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"
Q3 2024
10-Q • Filed 10/30/2024
Summary
Microsoft delivered strong Q3 FY2025 results with 16% revenue growth to $65.6B and 11% net income growth to $24.7B, driven by robust cloud expansion with Azure/cloud services growing 33% YoY and Microsoft Cloud reaching $38.9B (+22%). The company is aggressively scaling AI infrastructure despite gross margin compression, maintaining healthy cash generation of $34.2B operating cash flow, while investing heavily in datacenter capacity for AI and cloud services.
Revenue
$65.58B
Net Income
$24.67B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 22% to $38.9 billion...Azure and other cloud services revenue grew 33% driven by demand for our portfolio of services, including 12 points from our 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."
"Gross margin percentage decreased driven by scaling our AI infrastructure...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 2024
10-K • Filed 7/30/2024
Summary
Microsoft delivered strong fiscal year 2024 results with revenue growth of 16% to $245.1 billion and net income growth of 22% to $88.1 billion, driven by robust cloud and AI infrastructure demand. Operating cash flow surged 35% to $118.5 billion, demonstrating excellent cash generation despite significant capital expenditure increases of 58% to $44.5 billion to support cloud and AI expansion. The company faces substantial regulatory headwinds in the EU (Digital Markets Act, AI Act, GDPR) and ongoing IRS tax disputes, but maintains strong pricing power and market positioning across its cloud, productivity, and gaming segments.
Revenue
$64.73B
Net Income
$22.04B
Guidance
Tone
Capex
$44.48B(+58.2% YoY)
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 23% to $137.4 billion."
"Azure and other cloud services revenue grew 30% driven by growth in our consumption-based 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."
"We are investing in artificial intelligence across the entire company and infusing generative AI capabilities into our consumer and commercial offerings."
"As of June 30, 2024, we believe our allowances for income tax contingencies are adequate. We disagree with the proposed adjustments and will vigorously contest the NOPAs through the IRS's administrative appeals office."
Q1 2024
10-Q • Filed 4/25/2024
Summary
Microsoft delivered strong Q1 FY2024 results with 17% revenue growth to $61.9 billion and 20% net income growth to $21.9 billion, driven by robust cloud growth (Microsoft Cloud +23%) and AI infrastructure investments. Azure growth accelerated to 31% while the Activision Blizzard acquisition significantly boosted Gaming segment performance. Operating margins remained healthy with 23% operating income growth, reflecting pricing power and successful cost management despite substantial infrastructure investments.
Revenue
$61.86B
Net Income
$21.94B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 23% to $35.1 billion...Server products and cloud services revenue increased 24% driven by Azure and other cloud services growth of 31%"
"We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training"
"We are investing in artificial intelligence (AI) across the entire company and infusing generative AI capabilities into our consumer and commercial offerings"
Q4 2023
10-Q • Filed 1/30/2024
Summary
Microsoft delivered strong Q4 FY2024 results with 18% revenue growth to $62.0 billion and 33% operating income growth to $27.0 billion, driven by robust Azure growth (30%), Office 365 Commercial expansion (17%), and the Activision Blizzard acquisition contribution. The company maintains pricing power and cloud momentum while acknowledging elevated capex requirements for AI infrastructure; however, significant tax contingencies from IRS transfer pricing disputes and supply chain constraints on specialized components present material risks.
Revenue
$62.02B
Net Income
$21.87B
Guidance
Tone
Partnerships
Key Quotes
"Microsoft Cloud revenue increased 24% to $33.7 billion driven by 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"
"The IRS is seeking an additional tax payment of $28.9 billion plus penalties and interest...We disagree with the proposed adjustments and will vigorously contest the NOPAs"
Q3 2023
10-Q • Filed 10/24/2023
Summary
Microsoft delivered strong Q3 FY2024 results with 13% revenue growth to $56.5B and 27% net income growth to $22.3B, driven by robust cloud expansion with Azure growing 29% and Microsoft Cloud revenue reaching $31.8B (up 24%). The company completed its $61.8B Activision Blizzard acquisition in October 2023 and continues heavy investment in AI infrastructure, with management expressing confidence in cloud and AI as core growth drivers despite acknowledging increased capex requirements ahead.
Revenue
$56.52B
Net Income
$22.29B
Guidance
Tone
Partnerships
Key Quotes
"We are creating the platforms and tools, powered by artificial intelligence ("AI"), that deliver better, faster, and more effective solutions to support small and large business competitiveness, improve educational and health outcomes, grow public-sector efficiency, and empower human ingenuity."
"Microsoft Cloud revenue increased 24% to $31.8 billion...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
$70,028.061M
Technology Avg
$40,813.995M
MSFT
79.6%
Cloud Infrastructure Avg
60.3%
Technology Avg
56.5%
Guidance: not_provided • Tone: neutral