Start with Microsoft’s earnings release for the headline results, then use its Form 10-K to check where growth came from, how much profit and cash it produced, what the company is investing in, and what risks it disclosed. Microsoft’s latest completed results as of October 7, 2026, are Q4 and full-year FY2026, announced July 29, 2026. Its fiscal year ended June 30, 2026. These reports explain past performance; they do not, on their own, establish whether MSFT is fairly valued or right for your portfolio.
1. Open the right documents and keep the periods straight
Use Microsoft’s FY2026 Q4 earnings release for a concise results map. Then read the company’s FY2026 Form 10-K for the annual narrative, financial statements, notes, management discussion, and risk factors. Microsoft’s SEC filings directory links to its annual 10-Ks and interim 10-Qs; use a 10-Q to follow results between annual filings.
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Microsoft’s fiscal year runs through June 30. Q4 FY2026 covers the quarter ended June 30, 2026; FY2026 covers the full year. Keep quarterly comparisons separate from annual ones: a single quarter may reflect seasonality or timing, while the annual figures show a broader period.
2. Read the headline results without mixing accounting bases
In the release, record revenue, operating income, net income, and diluted earnings per share (EPS). For each, note whether the amount and growth rate are GAAP or company-adjusted non-GAAP, and whether growth is reported or in constant currency. GAAP is the standard reported accounting basis; non-GAAP figures are company-defined adjustments and should be read alongside, not instead of, GAAP results.
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Microsoft reported FY2026 revenue of $331.8 billion, up 18% year over year, or 16% in constant currency. Reported GAAP operating income was $155.2 billion, up 21%, or 19% in constant currency. GAAP net income was $133.7 billion, up 31%; the company also reported adjusted non-GAAP net income of $128.8 billion, up 22%. GAAP diluted EPS was $17.95, up 32%, compared with adjusted non-GAAP diluted EPS of $17.28, up 22%. These are full-year FY2026 figures, not Q4 results. See the earnings release for its definitions and reconciliations.
Growth in revenue, operating income, net income, and EPS can differ. In this example, GAAP net income and EPS growth were higher than adjusted growth. The release says FY2026 GAAP net income and diluted EPS included net gains from Microsoft’s OpenAI investments of $4.963 billion and $0.67 per share, respectively. For Q4 alone, the reported impact was $480 million and $0.07 per share. Microsoft excludes the OpenAI investment impact from its adjusted non-GAAP presentation. Treat that gain as an investment-related item, not as recurring revenue from ordinary product sales; compare both accounting bases before drawing conclusions about earnings growth.
3. Find which businesses drove growth
Microsoft reports three operating segments. Compare their revenue and operating income—not only their revenue growth—and check the product groups and explanations behind each total in the release and 10-K. Full-year segment revenue and Q4 year-over-year revenue growth show why consolidated growth can conceal different trends:
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| Operating segment | FY2026 revenue | Q4 FY2026 year-over-year revenue growth |
|---|---|---|
| Productivity and Business Processes | $140.0 billion | 14% |
| Intelligent Cloud | $137.8 billion | 32% |
| More Personal Computing | $54.1 billion | −4% |
These figures are reported by Microsoft for different periods: revenue is for the full fiscal year, while growth is for Q4. They are not directly comparable as if they were all annual growth rates. The contrast is still useful: Intelligent Cloud grew fastest in the quarter, while More Personal Computing declined. Check segment operating income, costs, and management’s explanations to see whether revenue momentum is translating into profit and how the business mix is changing. Source: Microsoft’s FY2026 Q4 earnings release.
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Revenue growth does not automatically mean profit growth. In the income statement, compare revenue with cost of revenue, gross margin, operating expenses, and operating income. Then read management’s discussion for explanations involving product mix, investment, or efficiency. A rising top line paired with weaker margins may tell a different story from revenue and profit growing together.
Microsoft’s FY2026 Form 10-K reports a 66% Microsoft Cloud gross margin percentage. The filing attributes the decrease to continued AI infrastructure investment and growing AI product usage, partly offset by efficiency gains in Azure and Microsoft 365 Commercial cloud. This is a useful trade-off to monitor: cloud demand and usage can grow while the cost of supplying that capacity pressures margins. The filing reports the results and management’s explanation, but does not establish what future returns Microsoft will earn on AI investment. Source: FY2026 Form 10-K.
5. Test growth against cash flow and the balance sheet
Read the cash flow statement and balance sheet alongside the income statement. Accounting earnings are not the same as cash available to shareholders. Check:
- Operating cash flow: how much cash the business generated, and how it compares with reported earnings.
- Capital spending: how much went toward property and infrastructure, including the investment needed to support cloud and AI activity.
- Working capital and commitments: whether changes in receivables, payables, or disclosed obligations affect cash timing.
- Liquidity and financing: cash and short-term investments, debt and other financing commitments, and access to capital.
Microsoft’s FY2026 filing says management expects existing cash, short-term investments, operating cash flows, and access to capital markets to support operating and specified financing needs for at least the next 12 months and thereafter for the foreseeable future. That is management’s assessment, not a guarantee; read it with the filing’s risk discussion. Source: FY2026 Form 10-K.
6. Interpret cloud revenue and remaining performance obligations carefully
Microsoft reported Q4 FY2026 Microsoft Cloud revenue of $59.3 billion, up 27%, and commercial remaining performance obligation (RPO) of $678 billion, up 84%. RPO represents contracted future work under Microsoft’s disclosure, but it is not cash already received or a guarantee of near-term revenue. Check the release and 10-K for the company’s accounting explanation and the timing of expected fulfillment. Source: Microsoft’s FY2026 Q4 earnings release.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.7. Read the risk disclosures before forming a view
Review “Risk Factors” and management’s discussion and analysis (MD&A) in the 10-K; use the corresponding discussion in a 10-Q for interim updates. Microsoft itself directs readers to these SEC filing sections for risks and uncertainties. Consider disclosed risks alongside growth, margins, and cash generation, and distinguish Microsoft’s statements from your own expectations. The FY2026 Form 10-K is the annual source for this review.
8. Keep earnings separate from the investment decision
An earnings report describes results over a past reporting period. Whether MSFT is attractive also depends on its current share price, the future performance investors expect, alternative investments, and your circumstances. The filings provide reported results and company disclosures, not a current fair-value calculation or a personal suitability assessment. Before investing, bring the report’s evidence together with current price and explicit assumptions about future growth, profitability, and investment needs.
A quick checklist for each report
- Write down the reporting period and distinguish quarter from fiscal year.
- Record GAAP results first; label non-GAAP adjustments and reported versus constant-currency growth.
- Compare segment revenue and operating income, then investigate the product and cost mix.
- Check margins and expenses, including disclosed investment-related pressure.
- Compare earnings with operating cash flow, capital spending, liquidity, and commitments.
- Interpret RPO and other visibility measures in light of their accounting and timing.
- Read MD&A and risk factors before considering price and your own assumptions.
For current releases and filings, start at Microsoft Investor Relations. The SEC index records the FY2026 Form 10-K filing date as July 29, 2026: SEC filing index. Results and guidance change, so confirm that a newer release or filing has not replaced these figures before relying on them.
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