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Read Microsoft’s earnings release for the headline results, then use its Form 10-K to check what drove them: segment performance, margins, cash flow, investment needs, accounting adjustments and risks. The latest completed results identified as of October 7, 2026, are Q4 and full-year FY2026, announced July 29, 2026; Microsoft’s fiscal year ended June 30, 2026. These reports show how the company performed, but they do not by themselves establish whether its shares are fairly priced or suitable for you.
Start with the right documents and reporting period
Use Microsoft’s FY2026 Q4 earnings release for the quick results map, and the FY2026 Form 10-K for the annual narrative, detailed financial statements, notes and risk discussion. The SEC filing index records the 10-K filing date as July 29, 2026. Microsoft’s SEC filings directory links to annual 10-Ks and interim 10-Qs; use a 10-Q to follow developments between annual reports, then return to the 10-K for the full-year account.
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Keep the quarter and the year distinct. Q4 FY2026 was the quarter ended June 30, 2026; FY2026 covers the full fiscal year ending on that date. A quarter may reflect seasonality, timing or a one-off item, so it should not stand in for the annual trend.
Read the headline results without mixing accounting bases
For each headline figure, note whether it is GAAP or company-adjusted non-GAAP, and whether revenue growth is reported or constant currency. Microsoft’s FY2026 release reported GAAP revenue of $331.8 billion, up 18% year over year, or 16% in constant currency. GAAP operating income was $155.2 billion, up 21%, or 19% in constant currency. GAAP net income was $133.7 billion, up 31%; Microsoft also reported adjusted non-GAAP net income of $128.8 billion, up 22%. GAAP diluted earnings per share (EPS) was $17.95, up 32%; adjusted non-GAAP diluted EPS was $17.28, up 22%. Microsoft FY2026 Q4 earnings release
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These are different presentations, not figures to combine. Keep GAAP visible, then read the reconciliation to see which items Microsoft removes from its adjusted presentation and how that affects the comparison.
Find which businesses are driving growth
Microsoft reports three operating segments. Compare their revenue and operating income, year-over-year changes, and the product groups behind each total; a consolidated growth rate can hide meaningful differences among businesses.
| Operating segment | FY2026 revenue | Q4 FY2026 year-over-year revenue growth |
|---|---|---|
| Productivity and Business Processes | $140.0 billion | 14% |
| Intelligent Cloud | $137.8 billion | 32% |
| More Personal Computing | $54.1 billion | −4% |
Segment revenue figures are for FY2026; growth rates are for Q4 FY2026. Microsoft’s release reported consolidated full-year revenue growth of 18%, while Q4 segment growth ranged from 32% in Intelligent Cloud to a 4% decline in More Personal Computing. Check segment operating income alongside revenue to see whether a growing business is also converting sales into profit. Microsoft FY2026 Q4 earnings release
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Test growth against margins, costs and AI investment
Revenue growth is not the same as profit growth. Compare cost of revenue, gross margin, operating expenses and operating income in the statements, then read management’s explanation of changes in mix, investment and efficiency.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Microsoft’s FY2026 Form 10-K reported a Microsoft Cloud gross margin percentage of 66%. The filing attributed the decrease to continued AI infrastructure investment and growing AI product usage, partly offset by efficiency gains in Azure and Microsoft 365 Commercial cloud. The figures establish growth and stated margin pressure; they do not establish what return Microsoft will ultimately earn on AI investment. A useful question is whether cloud and AI demand can support margins and cash generation as capacity investment develops. Microsoft FY2026 Form 10-K
Separate cloud demand indicators from realized results
Microsoft reported Q4 FY2026 Microsoft Cloud revenue of $59.3 billion, up 27%. It also reported commercial remaining performance obligation (RPO) of $678 billion, up 84%. RPO represents contracted future work under Microsoft’s disclosure, but it is not cash already received or guaranteed near-term revenue. Read the filing’s accounting explanation and fulfillment timing before treating it as evidence of future sales. Microsoft FY2026 Q4 earnings release
Check cash generation, capital spending and financing
Read the cash flow statement and balance sheet alongside the income statement. Compare cash from operations with capital investment, and inspect working capital, financing and commitments in the statements and notes. Accounting earnings are not the same as cash available to shareholders.
In the FY2026 Form 10-K, Microsoft’s management said existing cash, short-term investments, operating cash flows and access to capital markets were expected to support operating and specified financing needs for at least the next 12 months and thereafter for the foreseeable future. This is management’s assessment, not a guarantee; weigh it alongside the filing’s risk disclosures. Microsoft FY2026 Form 10-K
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Microsoft said FY2026 net income and diluted EPS included net gains from investments in OpenAI of $4.963 billion and $0.67 per share, respectively. For Q4 alone, the impact was $480 million and $0.07 per share. Microsoft’s adjusted non-GAAP presentation excludes the impact from OpenAI investments. These gains are not recurring revenue from ordinary product sales; compare the GAAP and adjusted figures and use the reconciliation to understand the difference. Microsoft FY2026 Q4 earnings release
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Read the risk discussion before forming a view
Read Management’s Discussion and Analysis (MD&A) for explanations of results and Risk Factors for uncertainties that could affect them. Microsoft directs readers to these sections in its SEC filings. Consider the risks alongside operating indicators, and distinguish the company’s statements and expectations from your own assumptions. Microsoft FY2026 Form 10-K
Use earnings as an input, not a valuation verdict
Only after reviewing performance, cash generation and risks should you compare results with the share price and expectations already reflected in it. To assess the business across periods or segments, focus on:
- Growth: compare reported and constant-currency growth, and compare each quarter with the same quarter a year earlier as well as each full year with the prior year.
- Profit conversion: compare segment operating income and margins with revenue, looking for cost and mix changes.
- Cash conversion and investment: check operating cash flow, capital spending, working capital, financing and cash commitments.
- Visibility and timing: consider RPO alongside fulfillment periods, renewals and customer risks; contracted amounts are not recognized revenue.
- Accounting quality: distinguish GAAP from non-GAAP, check foreign-exchange effects and investment gains, and note any recast prior-period presentation.
- Risk and valuation: use filings to assess disclosed uncertainties and historical results, then separately assess the current price and assumptions about the future.
An earnings report describes company performance over a reporting period. Whether the shares are attractive depends on price, future assumptions, alternatives and your circumstances; the reports alone cannot settle that question.
Microsoft’s Investor Relations page provides current earnings and filing links. Check for a newer release or filing before relying on these FY2026 figures, because results and guidance change.
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