Microsoft's Q4 Earnings Show Mixed Results Amid Cloud Growth

WHO:

The Verge - Microsoft Corp. is the organization reporting the financial results.

WHAT:

TechCrunch - Microsoft reported that its earnings per share (EPS) for Q4 was $4.74, an increase of 23% when adjusted for the impact from the investment in OpenAI.

Yahoo Finance - Microsoft’s Intelligent Cloud segment saw revenue of $39.3 billion versus expectations of $38.1 billion.

GeekWire - Overall, for the fiscal year ended June 30, Microsoft's revenue increased 18%, or $50.1 billion, to $331.8 billion.

GeekWire - Microsoft's Azure cloud business grew 43% last quarter, exceeding its own forecast, and topped $100 billion in annual revenue for the first time.

Techmeme - Microsoft reported that its capital expenditures (capex) increased by 70% year-over-year to $41 billion.

Techmeme - An accounting change has lowered Microsoft's 2026 capex forecast to $175 billion from $190 billion, while its spending plans remain unchanged.

TechCrunch - In Q4, Microsoft's Anthropic investment saw a $3.2 billion gain, while its OpenAI investment was marked down approximately $600 million but has generated a $5 billion gain on a full-year basis.

Kotaku - Xbox revenue decreased by $1.7 billion or 7 percent for the entire fiscal year, driven by declines in Xbox content and services and Xbox hardware.

TechCrunch - Microsoft 365 Copilot paid seats surpassed 30 million, with net seat adds more than doubling quarter over quarter.

Yahoo Finance - Earnings Per Share (EPS) increased by 23% when adjusted for the impact from the investment in OpenAI.

Yahoo Finance - Windows OEM and Devices revenue is expected to decline in the high-teens for FY27 due to lower PC market demand and higher component costs.

Yahoo Finance - Operating margins are expected to decline slightly in FY27 due to continued investments in AI infrastructure and R&D.

Yahoo Finance - Foreign exchange is expected to decrease total revenue growth by less than 1 point in Q1 FY27, adding headwinds to financial performance.

Kotaku - Xbox revenue decreased by $1.7 billion or 7 percent year-over-year, driven by declines in Xbox content and services and Xbox hardware.

Kotaku - Xbox content and services revenue decreased 5 percent on a prior year comparable that benefited from strong first-party content performance.

Kotaku - Xbox hardware revenue decreased 29 percent driven by a lower volume of consoles sold.

Techmeme - Microsoft reported that the standard Xbox Series X is now priced at $750, a 33-percent increase from its launch price in 2020.

TechCrunch - Microsoft 365 Copilot reached more than 30 million paid seats.

The Verge - Revenue from Microsoft's productivity business, which includes services like Microsoft 365 and LinkedIn, spiked 14% to $37.8 billion.

TechCrunch - Microsoft reported that its capital expenditures (capex) increased by 70% year-over-year to $41 billion.

Techmeme - An accounting change has lowered Microsoft's 2026 capex forecast to $175 billion from $190 billion, while its spending plans remain unchanged.

The Verge - Microsoft CEO Satya Nadella stated that the company expects "to return the business to growth in fiscal 2027."

TechCrunch - Microsoft logged $3.2 billion from its investment in Anthropic.

Push Square - Microsoft is losing approximately $150 on every Xbox Series X|S console sold.

Push Square - The price of a 1TB Xbox Series X will increase to $800 starting in August.

The Verge - Microsoft reported Q4 Windows OEM and Devices revenue down 7% year-over-year.

The Verge - Xbox hardware revenue decreased by 13%.

The Verge - Xbox content and services revenue fell by 10%.

GeekWire - Microsoft's Azure cloud business grew 43% last quarter and topped $100 billion in annual revenue for the first time.

CNBC - Microsoft reported Q4 Azure and other cloud services revenue up 43% year-over-year, exceeding the estimated growth of 40%.

Microsoft - Microsoft reported Q4 revenue up 18% year-over-year to $90 billion.

Microsoft - Net income for the quarter increased by 31% to $35.8 billion.

Microsoft - Microsoft Cloud revenue rose by 27% to $59.3 billion.

WHERE:

Microsoft - The financial results were announced from Redmond, Washington.

WHEN:

Microsoft - The results reported are for the quarter ended June 30, 2026.

WHY:

Push Square - The increase in hardware prices is attributed to a memory component crisis driven by demands of AI.

GeekWire - The growth in Azure revenue was attributed to record AI spending, which impacted cash flow.

HOW:

Yahoo Finance - Microsoft reported that it spent $41 billion on capital expenditures in Q4, which was below the anticipated $42 billion.

Yahoo Finance - Effective FY27, Microsoft is extending the useful life of data centers and office buildings from 15 to 25 years, impacting future depreciation and CapEx expectations.

Kotaku - Microsoft is implementing a strategy reset that includes approximately 1,600 layoffs over the following 12 months.

The Verge - Microsoft CEO Satya Nadella stated, "When it comes to Xbox, we are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth."

TechCrunch - Microsoft reported mixed results from its investments in OpenAI, indicating varying performance outcomes.

GeekWire - Microsoft incurred a record $41 billion in capital spending, leading to a 23% decrease in free cash flow.

(UPDATED July 30, 2026 19:23 UTC)

Microsoft has announced impressive financial results, reporting earnings per share of $4.74 for the fourth quarter, which reflects a 23% increase when adjusted for its investment in OpenAI. The company's Intelligent Cloud segment generated revenue of $39.3 billion, surpassing expectations of $38.1 billion, while overall revenue for the fiscal year ending June 30 rose by 18% to reach $331.8 billion. Additionally, Microsoft spent $41 billion on capital expenditures in the fourth quarter, slightly below the anticipated $42 billion.

(UPDATED July 30, 2026 18:21 UTC)

Microsoft's Azure cloud business has seen remarkable growth, with a 43% increase last quarter, surpassing its own forecasts and achieving over $100 billion in annual revenue for the first time. The company also reported a significant rise in capital expenditures, which jumped 70% year-over-year to $41 billion, although an accounting change has adjusted its 2026 capex forecast down to $175 billion from $190 billion. Additionally, Microsoft is extending the useful life of its data centers and office buildings from 15 to 25 years starting in FY27, which will affect future depreciation and capital expenditure expectations.

(UPDATED July 30, 2026 10:41 UTC)

Microsoft's Xbox revenue has taken a hit, decreasing by $1.7 billion, or 7 percent, for the entire fiscal year, largely due to declines in both Xbox content and services as well as hardware sales. On a brighter note, Microsoft 365 Copilot has surpassed 30 million paid seats, with net additions more than doubling quarter over quarter, while adjusted earnings per share increased by 23 percent, thanks to the investment in OpenAI. Looking ahead, Windows OEM and Devices revenue is projected to decline in the high-teens for FY27 due to lower demand in the PC market and rising component costs, and Microsoft is also extending the useful life of its data centers and office buildings from 15 to 25 years, which will affect future depreciation and capital expenditure expectations.

(UPDATED July 30, 2026 05:53 UTC)

Microsoft has announced a significant drop in Xbox revenue, which decreased by $1.7 billion or seven percent year-over-year, largely due to declines in both Xbox content and services as well as hardware sales. The company reported that revenue from Xbox content and services fell by five percent, while hardware revenue saw a staggering 29 percent decrease, attributed to a lower volume of consoles sold, with the standard Xbox Series X now priced at $750, a 33 percent increase from its launch price in 2020. In response to these challenges, Microsoft is implementing a strategy reset that will involve approximately 1,600 layoffs over the next 12 months.

(UPDATED July 30, 2026 03:55 UTC)

Microsoft 365 Copilot has now surpassed 30 million paid seats, marking a significant milestone for the platform. In addition, revenue from Microsoft's productivity business, which encompasses services like Microsoft 365 and LinkedIn, surged by 14% to reach $37.8 billion. CEO Satya Nadella emphasized that the company is making essential decisions regarding Xbox to reset the business for long-term growth.

(UPDATED July 30, 2026 01:29 UTC)

Microsoft has announced a significant increase in its capital expenditures, reporting a 70% year-over-year rise to $41 billion. However, an accounting change has led to a reduction in the company's capex forecast for 2026, now projected at $175 billion instead of $190 billion, although their spending plans remain unchanged. CEO Satya Nadella expressed confidence, stating that the company anticipates returning to growth in fiscal 2027.

(UPDATED July 30, 2026 00:17 UTC)

Microsoft has announced a substantial gain of $3.2 billion from its investment in Anthropic. However, the tech giant reported mixed results from its investments in OpenAI, highlighting a range of performance outcomes. This reflects the diverse landscape of artificial intelligence investments and their varying levels of success.

(UPDATED July 29, 2026 23:18 UTC)

Microsoft is facing a significant financial hit, losing about $150 on every Xbox Series X|S console sold. Starting in August, the price of a 1TB Xbox Series X will rise to $800 due to a memory component crisis fueled by the increasing demands of AI. This price adjustment reflects the challenges the company is encountering in the current market.

(UPDATED July 29, 2026 22:24 UTC)

Microsoft has reported its financial results for the quarter ending June 30, 2026, revealing a revenue increase of 18% year-over-year, reaching $90 billion, and a net income rise of 31% to $35.8 billion. However, the company saw a decline in its Windows OEM and Devices revenue by 7%, along with a 13% drop in Xbox hardware revenue and a 10% decrease in Xbox content and services revenue. On a positive note, Microsoft's Azure cloud business experienced remarkable growth, with revenue up 43% year-over-year, surpassing $100 billion in annual revenue for the first time, driven by record AI spending despite a significant increase in capital expenditures.