The earnings call will be key for FY2027 guidance — listen for Azure growth trajectory and capex plans. The stock is already up 7.54% pre-market, suggesting partial anticipation. If guidance signals continued investment spend and cloud deceleration, profit-taking could occur.
Price Chart
Executive Summary
Microsoft reported Q4 FY2026 revenue of $90.0B (+18% YoY) and GAAP EPS of $4.81, beating consensus of $4.24 by 13.4%. Azure growth accelerated to 43% and Microsoft Cloud revenue reached $59.3B (+27%), driven by AI and Copilot adoption. No forward guidance was provided in the filing, but the strong beat across all key metrics underscores robust cloud and AI momentum.
Key Financial Metrics
Key Facts
- Revenue $90.0B, up 18% YoY, vs consensus $87.63B (beat by 2.7%)
- GAAP diluted EPS $4.81, up 32% YoY, vs consensus $4.24 (beat by 13.4%)
- Non-GAAP EPS (adj. for OpenAI) $4.74, up 23% YoY
- Microsoft Cloud revenue $59.3B, up 27% YoY
- Azure and other cloud services revenue growth accelerated to 43%
- Commercial remaining performance obligation (RPO) $678B, up 84%
- Microsoft 365 Copilot reached over 30 million paid seats
- Operating income $40.6B, up 18% YoY; operating margin 45.1%
- Free cash flow $19.6B in the quarter ($55.4B operating CF less $35.8B capex)
- More Personal Computing segment declined 4% (Windows OEM -7%, Xbox -10%)
Financial Impact
EPS beat consensus by $0.57 (13.4%), revenue beat by $2.37B (2.7%). Azure growth acceleration and strong cloud metrics confirm AI monetization trajectory.
Risk Factors
- Massive capex ramp ($115.9B in FY2026, up 80% YoY) could pressure future margins if AI demand softens
- PC and Xbox revenue declines signal legacy headwinds
- No quantitative guidance provided; outlook on call may disappoint relative to elevated expectations
- Anthropic investment gain ($3.2B) boosted EPS, potentially masking core earnings growth rate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-323632 |
| Document: msft-20260729.htm | 0001193125-26-323632 |
| Document: 0001193125-26-323632-index-headers.html | 0001193125-26-323632 |
| Document: 0001193125-26-323632-index.html | 0001193125-26-323632 |
| Document: 0001193125-26-323632.txt | 0001193125-26-323632 |
| 8-K Data (Synthetic) | 0001193125-26-323632 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 23, 2026 9d ago | ANALYST-UPGRADE | $500.59 $518.86 | ▲ +3.65% | ▲ +3.51% | $519.22 (+3.72%) |
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Aug 4, 2026 8w ago | 144 | $492.37 $503.48 | ▲ +2.26% | ▲ +2.36% | $519.22 (+5.46%) |
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