Microsoft Corp. (Nasdaq: MSFT) reported results for its fiscal fourth quarter ended June 30, 2026, on July 29, 2026. Total revenue reached $90.0 billion, up 18% year-over-year. Non-GAAP diluted earnings per share came in at $4.74, against a third-party LSEG consensus estimate of $4.24 as of July 29, 2026 (source: CNBC, July 29, 2026). The sections below present every disclosed metric, segment line, and guidance figure in one place.

1. Key Numbers — Q4 FY2026

Non-GAAP figures exclude the net impact from investments in OpenAI. Source: Microsoft press release, July 29, 2026 (microsoft.com/investor); LSEG consensus via CNBC, July 29, 2026.

2. Did Microsoft Beat or Miss in Q4 FY2026?

Microsoft's Q4 FY2026 revenue of $90.01 billion exceeded the LSEG consensus estimate of $87.62 billion by $2.39 billion (+2.7%), per CNBC's report dated July 29, 2026, citing LSEG data.

Non-GAAP diluted EPS of $4.74 exceeded the LSEG consensus estimate of $4.24 by $0.50 (+11.8%), per the same CNBC report. GAAP diluted EPS of $4.81 represented a 32% increase from $3.65 in the prior-year quarter (Microsoft press release, July 29, 2026).

The company noted in its press release that several discrete items affected results relative to its April 29, 2026 guidance, producing a net benefit of $0.27 to diluted EPS. These items included a $3.2 billion gain from its investment in Anthropic and lower-than-expected expenses related to a Voluntary Retirement Program, partially offset by severance expense and impairment charges in Xbox (Microsoft press release, July 29, 2026).

Gross margin was $60.5 billion, or approximately 67.2%, in Q4 FY2026, down from 68.6% in the prior-year quarter ($52.4 billion on $76.4 billion in revenue), reflecting higher cost of revenues from cloud and AI infrastructure growth (Microsoft income statement, July 29, 2026). Operating cash flow grew 30% to $55.4 billion; free cash flow declined 23% to $19.6 billion (Yahoo Finance / Microsoft earnings call highlights, July 29, 2026).

2.1 Full Fiscal Year 2026 Summary

For the twelve months ended June 30, 2026, Microsoft reported:

Non-GAAP excludes net impact from investments in OpenAI. Source: Microsoft press release, July 29, 2026.

3. How Did MSFT Stock React?

Following the July 29, 2026 earnings release (after market close), MSFT shares moved approximately +8% in extended trading, per CNBC's report dated July 29, 2026. As of Wednesday's regular session close on July 29, 2026, MSFT shares had declined approximately 19% year-to-date, while the S&P 500 had gained approximately 7% over the same period (CNBC, July 29, 2026). A 52-week price range was not available in the materials used for this recap.

4. What Guidance Did Microsoft Give?

Microsoft provided the following forward-looking guidance on its earnings conference call and webcast on July 29, 2026. These figures are reported as attributed statements by the company and its executives. Microsoft's press release includes a forward-looking statements cautionary note; actual results could differ materially due to the risk factors described in that section and in Microsoft's SEC filings.

4.1 Q1 FY2027 Revenue Guidance

Source: CNBC, July 29, 2026, citing Microsoft earnings call and LSEG/StreetAccount consensus data.

The company said Q1 FY2027 revenue of $89.85–$90.95 billion would represent approximately 16% growth at the midpoint of the range. Microsoft's CFO Amy Hood said she expects the company to remain free-cash-flow positive in fiscal year 2027 (CNBC, July 29, 2026).

4.2 Capital Expenditure Outlook

CFO Amy Hood said on the earnings call that the company plans further growth in capital expenditures in FY2027, citing "demand signals across our portfolio" (CNBC, July 29, 2026). She said Microsoft would extend the estimated useful life of office and data center buildings to 25 years from 15 years, effective FY2027, resulting in an adjusted calendar year 2026 capital expenditure and finance lease expectation of approximately $175 billion (CNBC, July 29, 2026). Q4 FY2026 capital expenditures and finance leases totaled $41 billion, up 69% year-over-year (CNBC, July 29, 2026).

4.3 Other Disclosed Guidance Items

The company said it expects Windows OEM and Devices revenue to decline in the high-teens in FY2027, citing lower PC market demand and higher component costs (Yahoo Finance / earnings call highlights, July 29, 2026). Operating margins are expected to decline slightly in FY2027 due to continued investments in AI infrastructure and R&D (Yahoo Finance, July 29, 2026). Foreign exchange is expected to reduce total revenue growth by less than 1 percentage point in Q1 FY2027 (Yahoo Finance, July 29, 2026).

5. What Did Microsoft Report by Segment?

5.1 Segment Revenue — Q4 FY2026

Source: Microsoft segment results, press release, July 29, 2026.

The Intelligent Cloud segment, which includes Azure, exceeded the StreetAccount analyst consensus estimate of $38.16 billion (CNBC, July 29, 2026). The Productivity and Business Processes segment exceeded the StreetAccount consensus of $37.19 billion. The More Personal Computing segment of $12.85 billion exceeded the StreetAccount consensus of $12.17 billion (CNBC, July 29, 2026).

5.2 Selected Product and Service Revenue — Q4 FY2026

†Microsoft 365 Commercial cloud revenue increased 16% when adjusted for a prior-year comparable that benefited from 2 points of in-period revenue recognition; on a reported basis, it increased 14%. Source: Microsoft press release, July 29, 2026.

Azure growth accelerated from approximately 40% in Q3 FY2026 to 43% in Q4 FY2026. Full-year Azure revenue surpassed $100 billion for the first time (CNBC, July 29, 2026; Microsoft press release, July 29, 2026). Microsoft 365 Copilot paid seats surpassed 30 million, up from more than 20 million as of April 2026 (CNBC, July 29, 2026).

5.3 Management Statements

Satya Nadella, chairman and chief executive officer of Microsoft, stated in the company's July 29, 2026 press release:

"We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results. This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation."

Amy Hood, executive vice president and chief financial officer of Microsoft, stated in the same press release:

"We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year."

6. What Risk Factors Did Microsoft Disclose?

The following risk factors are drawn directly from Microsoft's July 29, 2026 press release forward-looking statements cautionary legend. Additional risk factors appear in Microsoft's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q (available at microsoft.com/investor or sec.gov).

1. Competition and AI Strategy Execution Risk. Microsoft's press release listed "intense competition in all of our markets that could adversely affect our results of operations" and "substantial investments in cloud and AI strategy that depend on customer demand, technological developments, competitive dynamics, and regulatory condition" as risk factors. The company also cited the risk that "development, delivery, and maintenance of competitive cloud-based and AI products and services" may not achieve broad customer adoption or sustainable revenue growth.

2. Cybersecurity, Privacy, and AI Deployment Risk. The press release identified "cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position," as well as "disclosure and misuse of personal data that could cause liability and harm to our reputation." It also noted risks from "issues about the development, deployment, and use of AI that may result in reputational or competitive harm, or liability."

3. Infrastructure, Regulatory, and Macroeconomic Risk. The press release cited "inability to develop and expand adequate infrastructure," "potential consequences of new, existing, and evolving legal and regulatory requirements," and "adverse economic or market conditions that could harm our business" as risk factors. It also listed "supply or other quality problems" and "excessive outages, disruptions, or capacity constraints of our services."

Source: Microsoft press release forward-looking statements legend, July 29, 2026 (news.microsoft.com/source/2026/07/29).

7. When Is Microsoft's Next Earnings Date?

Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases during Q4 FY2026 (Microsoft press release, July 29, 2026). For the full fiscal year 2026, the company paid $26.4 billion in cash dividends and repurchased $22.3 billion in common stock, per the cash flow statement in the July 29, 2026 press release. Investors should verify the next earnings date directly with Microsoft's Investor Relations department at (800) 285-7772 or at microsoft.com/investor, as the October 27, 2026 date is an estimate and is subject to change.

8. Frequently Asked Questions

Q1: What was Microsoft's revenue for Q4 FY2026?
Microsoft reported total revenue of $90.01 billion for the fiscal fourth quarter ended June 30, 2026, up 18% year-over-year from $76.44 billion in the prior-year quarter (Microsoft press release, July 29, 2026).

Q2: What was Microsoft's non-GAAP EPS for Q4 FY2026?
Non-GAAP diluted EPS was $4.74 for Q4 FY2026, a 23% increase from non-GAAP diluted EPS of $3.86 in Q4 FY2025; this figure excludes the net impact from investments in OpenAI (Microsoft press release, July 29, 2026).

Q3: How fast did Azure grow in Q4 FY2026?
Azure and other cloud services revenue increased 43% year-over-year in Q4 FY2026, up from approximately 40% growth in Q3 FY2026, as reported by Microsoft in its July 29, 2026 press release; full-year Azure revenue surpassed $100 billion for the first time.

Q4: What guidance did Microsoft give for Q1 FY2027?
The company said it expects Q1 FY2027 total revenue of $89.85–$90.95 billion, representing approximately 16% growth at the midpoint, and Azure growth of approximately 45% in constant currency (CNBC, July 29, 2026, citing the Microsoft earnings call).

Q5: What was Microsoft's free cash flow in Q4 FY2026?
Free cash flow was $19.6 billion in Q4 FY2026, a decline of 23% year-over-year, while operating cash flow grew 30% to $55.4 billion in the same period (Yahoo Finance / Microsoft earnings call highlights, July 29, 2026).

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