Microsoft Earns $3.2 Billion from Anthropic
Microsoft FY2026 Q4 revenue hits $90B, Azure tops $100B annual, Copilot seats exceed 30M, and AI investments surge.
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After-hours rise of 8.83%.
Today, Microsoft(MSFT 0.00%↑) released its fiscal year 2026 fourth-quarter (corresponding to the second quarter of calendar year 2026) and full-year financial results. Its AI business continued to expand commercially, while computing power investment and cost pressures rose in tandem. Azure annual revenue surpassed $100 billion for the first time, Microsoft 365 Copilot paid seats exceeded 30 million, and Azure AI Foundry customers reached 100,000. At the same time, capital expenditures this quarter grew 70% year-over-year to $41 billion.
This fiscal quarter, Microsoft revenue reached $90.007 billion, up 18% year-over-year; net income was $35.766 billion, up 31% year-over-year; diluted earnings per share were $4.81, up 32% year-over-year.
For the full fiscal year 2026, Microsoft revenue reached $331.839 billion, up 18% year-over-year; net income reached $133.749 billion, up 31% year-over-year.
Cloud business remains Microsoft’s primary growth driver. Microsoft Cloud revenue this quarter reached $59.3 billion, up 27% year-over-year; Azure and other cloud services revenue grew 43% year-over-year.
However, increased investment in AI infrastructure is also affecting cash flow. About two-thirds of this quarter’s capital expenditures were directed toward short-term assets such as GPUs and CPUs; free cash flow declined 23% year-over-year to $19.639 billion.
