On July 29, 2026, Microsoft reported results for the fourth quarter of fiscal year 2026. Quarterly revenue was $90.0 billion, up 18 percent, with operating income of $40.6 billion, up 18 percent, and GAAP net income of $35.8 billion, up 31 percent. Microsoft Cloud revenue was $59.3 billion for the quarter, up 27 percent, and Azure and other cloud services revenue grew 43 percent.
Full-year revenue was $331.8 billion, up 18 percent. CEO Satya Nadella framed the year around two milestones: “This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats.” He added that Microsoft is “advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results.” CFO Amy Hood called it “a strong quarter to close out the fiscal year.”
The cost of that growth is visible in the cash flow statement. Additions to property and equipment were $35.802 billion in the quarter and $115.948 billion for the full fiscal year. Azure crossing $100 billion in annual revenue while capital spending runs above $115 billion in the same year is the clearest single illustration of the current AI trade: hyperscalers are spending more than a full year of their flagship cloud revenue to build the capacity that revenue is meant to consume.