Microsoft’s AI and Cloud Momentum Drives Record FY2026 Results

REDMOND, Wash. — September 26, 2026 — Microsoft Corporation (NASDAQ: MSFT) closed fiscal 2026 with strong growth, driven largely by accelerating demand for artificial intelligence and cloud services.

Microsoft reported $331.8 billion in fiscal-year revenue, an 18% increase from the previous year. Operating income reached $155.2 billion, up 21%, while net income climbed 31% to $133.7 billion.

Azure Emerges as a Major Growth Engine

Azure and other cloud services remained at the center of Microsoft's growth story. In the fourth quarter, Azure and other cloud services revenue increased 43% year over year. For the full fiscal year, Azure revenue surpassed $100 billion for the first time, increasing 41%.

Microsoft Cloud revenue reached $214.4 billion for FY2026, up 27% from the previous year. The company said demand remained strong across Azure, Microsoft 365 and its growing portfolio of AI-powered applications and services.

AI Demand Continues to Expand

Microsoft's latest results highlight the growing role of AI throughout its business. The company continued expanding data-center capacity to meet demand for AI infrastructure, adding 31 new data centers during the fourth quarter and bringing its total additions for the year to 88.

Microsoft also reported $678 billion in commercial remaining performance obligations, an increase of 84% year over year. The figure represents contracted business that has not yet been recognized as revenue.

Strong Quarter Caps Record Fiscal Year

For the fourth quarter ended June 30, 2026, Microsoft generated $90.0 billion in revenue, up 18% year over year. Net income rose 31% to $35.8 billion, while diluted GAAP earnings per share increased 32% to $4.81.

Microsoft said its cloud and AI businesses were key contributors to the quarter's performance, while some consumer-oriented businesses, including Windows OEM and Xbox content and services, recorded declines.

Outlook

Microsoft's FY2026 results underscore how increasingly important AI infrastructure and cloud computing have become to the company's overall business. At the same time, Microsoft continues to invest heavily in data centers, computing capacity and AI development, meaning the financial impact of those investments will remain an important factor in future results.

Bottom line: Microsoft's FY2026 performance was marked by 18% overall revenue growth, $214.4 billion in Microsoft Cloud revenue, and Azure surpassing $100 billion in annual revenue—highlighting the scale of Microsoft's AI and cloud businesses. #QNTRises39% #newsdaily