MICROSOFT CORP (MSFT) Earnings History
MICROSOFT CORP - Q2 FY2026 EarningsBeat
EXECUTIVE SUMMARY
Microsoft reported strong second-quarter results driven by robust performance in its Cloud segment, particularly Azure, and significant contributions from AI initiatives. The company exceeded expectations across key financial metrics, demonstrating continued revenue acceleration and operating leverage.
POSITIVE HIGHLIGHTS
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Microsoft Cloud revenue crossed $50 billion, increasing 26% year-over-year to $51.5 billion.
positive - •
Azure and other cloud services revenue increased 39% year-over-year.
positive - •
GAAP diluted EPS increased 60% year-over-year to $5.16.
positive - •
Commercial remaining performance obligation increased 110% to $625 billion.
positive - •
Microsoft returned $12.7 billion to shareholders in Q2 FY2026, an increase of 32% compared to Q2 FY2025.
positive
CONCERNS & RISKS
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More Personal Computing segment revenue decreased 3% year-over-year.
negative - •
Xbox content and services revenue decreased 5% year-over-year.
negative - •
Windows OEM and Devices revenue increased only 1% year-over-year.
attention
FINANCIAL METRICS
MARGIN ANALYSIS
Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
REVENUE BY SEGMENT — Q2 FY2026 2026
VISUAL OVERVIEW
DETAILED BREAKDOWN
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Productivity and Business Processes | N/A | — | — | — | +14.0% |
Intelligent Cloud | N/A | — | — | — | +28.0% |
More Personal Computing | N/A | — | — | — | -3.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
SPECIAL ITEMS & ADJUSTMENTS
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
MANAGEMENT COMMENTARY
We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises.
We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.
Microsoft Cloud revenue crossed $50 billion this quarter, reflecting the strong demand for our portfolio of services.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
OPERATIONAL METRICS
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.