Microsoft significantly exceeded market expectations in the fourth quarter of the 2025-2026 financial year due to the rapid growth of cloud services:
In the recently concluded quarter, the company's net profit amounted to $35.77 billion, which is 31% higher than the same period last year. Earnings per share (EPS) rose to $4.81, while revenue increased by 18% to $90 billion. Analysts had forecasted revenue of $87.62 billion and adjusted EPS of $4.24:
The total revenue from the company's cloud services grew by 27% to $59.3 billion. Revenue from the Intelligent Cloud division increased by 32%, while income from Azure and other cloud services surged by 43%:
Revenue from the productivity and business processes division (including Office and LinkedIn) rose by 14% to $37.85 billion, while LinkedIn's revenue increased by 12%. Meanwhile, revenue from the personal computing solutions division (Windows, Xbox, Surface) fell by 4% to $12.9 billion:
For the entire financial year, Microsoft’s net profit reached $133.7 billion, and revenue totaled $331.84 billion, both growing by 31% and 18% respectively. The annual revenue from the company’s cloud business surpassed $100 billion for the first time. Additionally, in the last quarter, Microsoft returned $10.2 billion to shareholders through stock buybacks and dividend payments:
