Microsoft Corporation · 2026 Q2
ReportedJul 29, 2026
Period endedJun 30, 2026
Rule of 40+39
Consensus vs reported
EPS · ADJUSTED
BEAT +13%
$4.74
vs $4.21 expected
QoQ+11.0%
YoY—
Revenue
BEAT +3%
$90.01B
vs $87.6B expected
QoQ+8.6%
YoY+17.7%
QoQ and YoY are measured on the same basis as each panel's own consensus, so no panel compares two different measures.
Reported this quarter
Revenue
$90.01B
QoQ +8.6%
YoY +17.7%
EPS
$4.81
QoQ +12.6%
YoY +31.8%
Free Cash Flow
$19.64B
QoQ +24.3%
YoY -23.2%
Gross Margin
67.2%
QoQ -0.4 pp
YoY -1.4 pp
FCF Margin
21.8%
QoQ +2.8 pp
YoY -11.6 pp
Each tile opens the full quarterly series. Download the numbers as CSV or JSON.
What we learned
- Two-thirds of the earnings beat was a private mark-up. A $3.2B gain on the Anthropic stake added $0.33 of the roughly $0.50 beat over consensus. Microsoft revalues that stake only when a new financing round prices it, so it is not a quarterly tailwind.
- The capex "discipline" is partly a depreciation schedule. Calendar-2026 capex guidance fell to ~$175B from ~$190B, alongside a change spreading long-term data-centre leases over 25 years instead of 15 .
- The backlog is the number that needs no interpretation. Commercial RPO of $678B, up $51B in one quarter and 84% year over year — contracted, forward-visible revenue rather than an estimate. It is the strongest single piece of AI demand evidence in the season.
- The concentration worry got a specific answer. Amy Hood disclosed that nearly 90% of Microsoft Cloud revenue comes from customers outside the frontier AI labs — a quotable figure against the claim that Azure growth rides on OpenAI.
- Not every segment is on the wave. More Personal Computing revenue fell 4.4% to $12.9B , with Windows OEM guided down high-teens for FY2027 on an industry memory-chip shortage — the same cost pressure squeezing hardware supply chains all year.
Coverage around this release
R40
GitHub Was Microsoft's Best Acquisition. SpaceX Just Shipped Cursor's First Gem At It.
News · Aug 18, 2026
R40
The AI Capex Bet, Six Months In: What the Mag 7 Actually Spent (and What the Market Learned)
News · Jul 30, 2026
R40
Microsoft Q4 FY2026: Azure Hits 43% Growth, Stock Jumps 8.9% — the Hyperscaler That Got It Right
News · Jul 29, 2026
Estimate against reported
Our published estimate
Reported EPS
| Quarter | Estimate | Reported | Surprise |
|---|---|---|---|
| 2024 Q3 | — | $3.30 | — |
| 2024 Q4 | — | $3.23 | — |
| 2025 Q1 | — | $3.46 | — |
| 2025 Q2 | — | $3.65 | — |
| 2025 Q3 | — | $3.72 | — |
| 2025 Q4 | — | $5.16 | — |
| 2026 Q1 | — | $4.27 | — |
| 2026 Q2 | $4.21 | $4.74 | +13% |
Estimates are the consensus we published on our own preview for that quarter; quarters we did not preview carry the reported figure only. Where a consensus was set on a non-GAAP basis, the reported column shows that same measure.
Sources & downloads
Company
Published by the company on the day of the release.
HTML
Earnings press release
Investor relations announcement
SEC filings
Filed with the SEC under CIK 789019.
HTML
8-K results announcement
Filed Jul 29, 2026
HTM
Press release (EX-99.1)
Exhibit 99.1 to the 8-K
880 KB
HTML
Filing index
Every document in the 8-K submission
TXT
Complete submission
Raw archival text of the whole filing
HTML
10-K annual report
Period ended Jun 30, 2026, filed Jul 29, 2026
ZIP
XBRL data bundle
Structured financial statements from the 10-K
JSON
Company facts (XBRL)
Every figure MSFT has reported to the SEC
R40 data
The numbers shown on this page, as we hold them.
CSV
This quarter (CSV)
Reported metrics for 2026 Q2, spreadsheet-ready
JSON
This quarter (JSON)
Metrics, dates and matched filings