Microsoft Corporation Earnings Quote from Satya Nadella

Microsoft Corporation 2026 Q4: Financial Performance summary

• Cash flow from operations was $55.4 billion, up 30%; free cash flow was $19.6 billion, and shareholder returns were $10.2 billion in the quarter (over $43 billion for FY).
• Company gross margin percentage was 67%, down year-over-year, attributed to Azure mix shift and ongoing AI infrastructure/product usage investments, partially offset by efficiency gains.
• Fiscal year revenue surpassed $331 billion, up 18%, with Microsoft Cloud surpassing $214 billion, up 27%, and Azure surpassing $100 billion, up 41%.
• Operating income for the full fiscal year grew 21% to more than $155 billion, with operating leverage as the business invested in long-term growth.
• Q4 EPS was $4.74, up 23% adjusted for the impact from the investment in OpenAI; discrete items provided a benefit of $0.27 to diluted EPS.
• Q4 operating expenses increased 10% (R&D compute, talent, and data); operating margins increased slightly year-over-year to 45%.
• Q4 revenue was $90 billion, up 18% (and 17% in constant currency); gross margin dollars increased 15% and operating income increased 18%.