Microsoft says fourth-quarter revenue rose 18% to $90 billion

Microsoft reported results on July 29, 2026, for the fiscal fourth quarter ended June 30, 2026. Revenue was $90 billion, up 18% (up 17% in constant currency), and operating income was $40.6 billion, up 18%.

On a GAAP basis, net income was $35.8 billion, up 31%. On a non-GAAP basis, net income was $35.3 billion, up 22%. The company said its non-GAAP figures exclude the impact of its investments in OpenAI, which increased fourth-quarter net income by $480 million.

Several discrete items affected the quarter, for a net benefit of $0.27 to diluted earnings per share, the company said. These included a $3.2 billion gain from its investment in Anthropic and lower Voluntary Retirement Program expenses, partly offset by severance expense and impairment charges in Xbox.

For the fiscal year ended June 30, 2026, revenue was $331.8 billion, up 18%, and GAAP net income was $133.7 billion, up 31%. Microsoft Cloud revenue for the fourth quarter was $59.3 billion, up 27%. Chairman and chief executive officer Satya Nadella said Azure revenue surpassed $100 billion for the first time and that Microsoft 365 Copilot reached over 30 million paid seats.

Microsoft returned $10.2 billion to shareholders through dividends and share repurchases in the fourth quarter. The company said it will provide forward-looking guidance on its earnings conference call and webcast.