Microsoft Earnings Up 18 Percent to $90 Billion

Microsoft reported that it earned a net income of $35.8 billion on revenues of $90 billion in the quarter ending June 30, 2026. Those figures represent gains of 31 percent and 18 percent year-over-year (YOY), respectively. But Microsoft’s spending on AI infrastructure escalated dramatically in the quarter to $41 billion, a gain of 71 percent YOY.

“We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,” Microsoft chairman and CEO Satya Nadella said. “This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”

Intelligent Cloud, the business unit responsible for Azure, returned to its top place among Microsoft’s three top-level businesses for the first time in several quarters with revenues of $39.3 billion, a gain of 32 percent YOY. Azure revenue growth was 43 percent YOY, and server products revenue was roughly flat.

Productivity and Business Processes fell from the top spot with $37.8 billion in revenues, a gain of 14 percent YOY. Microsoft 365 commercial revenues were up 16 percent, Microsoft 365 commercial seats grew 6 percent, Microsoft 365 consumer cloud revenue grew 19 percent, and the Microsoft 365 consumer subscriber base grew 7 percent.

And as predicted last quarter, More Personal Computing stumbled badly with $12.9 billion in revenues, a decline of 4 percent YOY. Windows revenue from PC makers declined 7 percent, XBOX hardware revenue fell 13 percent, and XBOX content and services revenues declined 10 percent.