MSFT
Microsoft Q4 FY26 earnings
Revenue $90.0B, up 18% from a year ago. Net income $35.8B.
Microsoft grew revenue 18% to $90.0B in the June quarter. Intelligent Cloud was $39.3B, 44% of revenue. Operating margin was flat, but net margin rose to 40% on $3.4B of other income; net income was $35.8B, up 31%.
Intelligent Cloud: $138B in FY26, nearly twice FY23.
On the segment basis Microsoft reports today, Intelligent Cloud grew from $72.9B in FY23 to $137.8B in FY26. Earlier years were filed on an older basis after two segment recasts, so they are not drawn on this line.
XBOX, formerly Gaming: $21.8B in FY26, a down year.
XBOX, the line Microsoft called Gaming until FY2026, brought in $21.8B in FY26, down from $23.5B in FY25 and up from $11.6B in FY20. The FY24 step includes Activision Blizzard, consolidated from October 2023, as filed.
Where the revenue came from
| Segment | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Intelligent Cloud | $39.3B | 43.7% | |
| Productivity & Business Processes | $37.8B | 42.0% | |
| More Personal Computing | $12.9B | 14.3% |
The quarter, line by line
| Line | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Revenue | $90.0B | +18% | |
| Cost of revenue | $29.5B | 32.8% | +23% |
| Gross profit | $60.5B | 67.2% | +15% |
| Operating expenses | $19.9B | 22.1% | +10% |
| Operating income | $40.6B | 45.1% | +18% |
| Pretax income | $44.0B | 48.9% | |
| Income tax | $8.3B | 9.2% | +54% |
| Net income | $35.8B | 39.7% | +31% |
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Jun 30, 2026 | $90.0B | $35.8B | 39.7% |
| Mar 31, 2026 | $82.9B | $31.8B | 38.3% |
| Dec 31, 2025 | $81.3B | $38.5B | 47.3% |
| Sep 30, 2025 | $77.7B | $27.7B | 35.7% |
| Jun 30, 2025 | $76.4B | $27.2B | 35.6% |
| Mar 31, 2025 | $70.1B | $25.8B | 36.9% |
| Dec 31, 2024 | $69.6B | $24.1B | 34.6% |
| Sep 30, 2024 | $65.6B | $24.7B | 37.6% |