Microsoft Sees 31% Revenue Growth Despite Declining Market Valuation

Key Points

• Microsoft’s fiscal 2026 net income increased 31% to $133.7 billion, with total revenue reaching $331.8 billion, an 18% rise.

• As of now, Microsoft’s market capitalization is approximately $3.59 trillion, which is 4.5% lower than a year ago.

• Capital expenditures for fiscal 2026 are projected to be around $175 billion, surpassing total operating income of $155.2 billion for the same period.

Microsoft (NASDAQ: MSFT) reported a significant financial year ending June 30, 2026, with revenue climbing to $331.8 billion, a growth of 18%, while net income surged to $133.7 billion, marking a 31% increase. Despite these robust earnings, the company’s market cap of approximately $3.59 trillion has decreased by 4.5% compared to last year.

In fiscal 2026, Microsoft invested around $115.9 billion in capital expenditures, reflecting an 80% increase year-over-year. This spending exceeds its operating income of $155.2 billion, indicating a substantial increase in outflows amid a promising $678 billion backlog of contracted work yet to be recognized as revenue.