Microsoft’s stock surged 2.51% in after-hours trading to $400.35 after the company reported strong Q4 earnings. The tech giant posted $90 billion in revenue for the quarter ending June 30, 2026, marking an 18% increase fueled largely by its booming cloud business. However, some segments, including Windows and Xbox, showed declines, highlighting a mixed bag across the company.
Azure Powers Cloud Growth Beyond $100 Billion Milestone
Azure revenue climbed an impressive 43% over the fiscal year, pushing Microsoft Cloud’s total revenue to $59.3 billion this quarter and surpassing $100 billion in annual revenue a major milestone for the company’s cloud division. This rapid growth in cloud infrastructure and services compensated for softer sales elsewhere.
Microsoft’s commercial remaining performance obligations, a measure of contracted future revenue, rose 84% to $678 billion, signaling solid demand for its cloud offerings. Meanwhile, Microsoft 365 Copilot’s user base surpassed 30 million paid seats, underscoring the company’s expanding footprint in workplace automation and AI-driven productivity tools.
Mixed Quarterly Results Highlight Business Shifts
GAAP net income rocketed 31% to $35.8 billion, with diluted earnings per share reaching $4.81, beating previous guidance. Non-GAAP net income increased 22%, despite Xbox impairment charges and severance expenses that partially offset the results. Strong cloud demand helped Microsoft not only grow profits but also continue heavy investments in its data center infrastructure.
While Windows and Xbox revenues fell, Microsoft’s pivot toward cloud computing and AI remains on track. This shift mirrors broader tech industry trends where subscription and cloud-based services dominate growth.
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