Quarterly results beat analyst forecasts, sending Microsoft shares higher in after-hours trading.
Tech giant Microsoft reported Wednesday a net profit of $133,749 million for its 2026 fiscal year, a 31% year-over-year increase from the previous year, fueled in part by continued growth in its Azure cloud platform.
The company report posted a total revenue of $331.839 billion for the 12 months, which ended June 30, up 18% year over year, according to a press release issued after the close of trading on Wall Street.
Azure generated more than $100 billion in annual revenue for the first time, while Microsoft 365 Copilot, the company’s artificial intelligence assistant, surpassed 30 million paid licenses.
CEO Satya Nadella said the results demonstrate “the trust that customers place” in Microsoft “to drive their transformation toward AI.”
“We are pushing the boundaries of the cost-benefit curve, ensuring that every customer can turn ‘tokens’ into business results,” he added.
In the fourth fiscal quarter, that ran from April to June (the period investors focus on) Microsoft posted a net income of $35.7 billion, up 31% from a year earlier, on revenue of $90 billion, an 18% increase.
The quarter also included a $3.2 billion gain tied to its investment in Anthropic, AI assistant Claude’s developer, as well as lower-than-expected costs related to its voluntary retirement program.
Revenue from the company’s intelligent cloud segment reached 39.3 billion, up 32%, while Azure revenue climbed 43%.
In contrast, its personal computing business, which includes Windows, Xbox console and video games, generated $12.8 billion in revenue, a 4% decline from the same period last year.
During after-hours electronic trading after the close of Wall Street, the company’s stock climbed 2.7%, and topped Wall Street’s expectations.
