Microsoft reported strong financial results for the quarter ended June 30, with net profit rising 31 per cent year-on-year to $35.8 billion, while revenue increased 18 per cent to $90 billion, driven by continued demand for its cloud and artificial intelligence offerings.
The technology giant said operating income rose 18 per cent year-on-year to $40.6 billion. Diluted earnings per share (EPS) came in at $4.81, up 32 per cent on a GAAP basis compared with the same period last year.
On a non-GAAP basis, which excludes the impact from investments in OpenAI, Microsoft reported net income of $35.3 billion, up 22 per cent, while diluted EPS stood at $4.74, an increase of 23 per cent.
Greening the Future #
23 Jul 2026 - Vol 05 | Issue 30
Securing a sustainable India
Read Now Greening the Future The company said several one-time items had a positive impact on its quarterly performance compared with the guidance it had issued on April 29. These factors together added $0.27 to diluted earnings per share.
Microsoft said the quarter included a $3.2 billion gain from its investment in Anthropic and lower-than-expected expenses related to its Voluntary Retirement Program. These gains were partly offset by severance expenses and impairment charges in its Xbox business.
"When adjusting for these items, we exceeded expectations across revenue, operating income, and diluted earnings per share," the company said.
What Did Microsoft CEO Satya Nadella Say About AI Driving Business Value? #
Commenting on the results, Microsoft Chairman and Chief Executive Officer Satya Nadella said the company continues to help customers generate business value through artificial intelligence.
He added that Azure revenue surpassed $100 billion for the first time this year, while Microsoft 365 Copilot crossed 30 million paid seats, reflecting growing customer adoption of the company's AI offerings.
Microsoft Executive Vice President and Chief Financial Officer Amy Hood said the company closed the fiscal year on a strong note, supported by growth in its cloud business.
"We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27 per cent year-over-year," Hood said.
(With inputs from ANI)