Microsoft Corporation (MSFT) reported fourth-quarter fiscal 2026 earnings of $4.74 per share on a non-GAAP basis, reflecting a 23% year-over-year growth and surpassing the Zacks Consensus Estimate by 12.59%. GAAP earnings were $4.81, up 32% year over year. The company achieved revenues of $90 billion, an 18% increase year over year, beating estimates by 2.93%. Notably, Cloud revenues totaled $59.3 billion, representing a 27% year-over-year growth.
Key drivers of this performance included significant gains from Microsoft’s investment in Anthropic, which contributed $3.2 billion, and a strong demand for cloud and AI services. The Productivity & Business Processes segment generated $37.8 billion in revenues, while the Intelligent Cloud segment brought in $39.3 billion, a 32% increase year over year. Overall, operating income rose to $40.6 billion, a year-over-year increase of 18%.
Looking forward, Microsoft projects first-quarter fiscal 2027 revenues between $89.85 billion and $90.95 billion, suggesting growth of approximately 16% to 17%. The company anticipates capital expenditures to exceed $50 billion in the upcoming quarter, reflecting ongoing investment in infrastructure and AI development.
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