Microsoft MSFT Q4 2026: Azure tops $100B as EPS beats by 12%
As seen on the 24/7 Wall St. homepage on July 29, 2026.
Microsoft's 12% EPS beat extends a five-quarter streak as Azure crossed $100 billion in annual revenue and Copilot seats hit 30 million, but the company plowed $116 billion into infrastructure this year just to keep pace in AI.
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Microsoft reported Q4 2026 earnings per share of $4.74, clearing the consensus estimate of roughly $4.24 by nearly 12% — the fifth consecutive quarter the company has topped expectations. Revenue came in at $90 billion, about 3% above what analysts had forecast. The consistency of the beat streak is notable: going back to Q1 2025, Microsoft has not missed on EPS in a single quarter, and the magnitude of the Q2 2026 outperformance — reported EPS of $5.16 against an estimate of $3.92 — shows just how wide those gaps can run.
The headline AI milestones give the numbers their texture. Azure crossed $100 billion in annual revenue, a threshold that cements it as a genuine rival to Amazon Web Services at scale. Copilot, Microsoft's AI assistant embedded across its productivity suite, reached 30 million seats, a figure that translates directly into recurring software revenue. Both data points suggest the company's AI investments are beginning to show up on the top line rather than just in press releases.
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The cost side of the ledger is harder to ignore. Microsoft spent $116 billion on infrastructure during the fiscal year to sustain its AI buildout, a capital commitment that dwarfs almost anything in its own history and reflects the arms-race dynamic now defining the cloud industry. How quickly that spending converts to incremental margin — rather than just capacity — is the central question investors will be watching in the quarters ahead.
Mentioned: MSFT