Overview
- Microsoft, which reported fiscal fourth-quarter results on Monday, Aug. 3, 2026, posted $90 billion in revenue and $4.74 in adjusted EPS, topping analyst estimates.
- Azure revenue grew roughly 43% year over year and Microsoft Cloud sales rose 27%, continuing a run of double‑digit cloud growth that is driving the beat.
- Remaining performance obligations rose to $678 billion, up 84% year over year, giving Microsoft multi‑quarter revenue visibility with the company estimating about 30% of that backlog will convert to revenue in the next 12 months.
- Paid Microsoft 365 Copilot seats reached 30 million with net adds accelerating, and GitHub Copilot usage and new usage pricing show the company is starting to monetize AI features at scale.
- Investors pushed the stock higher and analysts raised price targets on the results, while Microsoft’s heavy AI capital spending and large data‑center lease commitments present a near‑term free‑cash‑flow and margin trade‑off for long‑term positioning.