Microsoft has reported strong earnings for 2026, beating Wall Street expectations with solid growth in cloud and AI services.
The company posted revenue of around $82.9 billion, showing an 18% increase compared to last year.
Earnings per share reached about $4.27, higher than analyst estimates, reflecting strong business performance.
Microsoft’s net income also increased significantly to nearly $31.8 billion, highlighting overall profitability growth.
A major driver of growth was Azure cloud services, which recorded around 39–40% revenue growth.
The company’s AI segment is expanding rapidly, reaching an estimated $37 billion annual revenue run rate.
Microsoft Cloud revenue rose strongly as well, supported by demand for AI tools and enterprise services.
Despite strong results, the company is spending heavily on AI infrastructure, which is impacting cash flow.
Analysts say Microsoft’s focus on AI and cloud will continue to drive long-term growth for the company.
Overall, the earnings report shows Microsoft remains a key leader in the global tech and AI industry.