Microsoft reported $90 billion in revenue for the quarter ended 30 June 2026, up 18 percent year-on-year, beating Wall Street expectations and pushing its shares up more than 7 percent in after-hours trading. The results were driven largely by its cloud and AI businesses, with Microsoft Cloud revenue reaching $59.3 billion (up 27 percent) and Azure revenue growing 43 percent, easing investor concerns about the company's heavy capital spending on AI infrastructure.

Operating income for the quarter was $40.6 billion, net income $35.8 billion, and diluted earnings per share $4.81, all showing double-digit growth, while Microsoft 365 Copilot's paid user base grew 50 percent quarter-on-quarter to over 30 million seats. For the full 2026 fiscal year, revenue totalled $331.8 billion, up 18 percent. Capital expenditure hit $41 billion for the quarter, up 70 percent year-on-year, bringing full-year capex to nearly $116 billion, though CFO Amy Hood noted much of this was short-lived hardware and finance leases, and quarterly operating cash flow still rose 30 percent to $55.44 billion, suggesting the AI spending spree is not yet squeezing the core business.