10-KPeriod: FY2026

MICROSOFT CORP Annual Report, Year Ended Jun 30, 2026

Filed July 29, 2026For Securities:MSFT

Summary

Microsoft Corporation's (MSFT) fiscal year 2026 performance demonstrates robust growth, primarily driven by its Intelligent Cloud segment, which saw a 30% revenue increase, largely fueled by Azure's 41% surge. The Productivity and Business Processes segment also performed strongly, with a 16% revenue uplift, notably from Microsoft 365 Commercial and Consumer cloud services showing significant growth. The company continues its aggressive investment in Artificial Intelligence (AI), integrating AI capabilities across its product portfolio, including Microsoft 365 Copilot and Azure AI offerings. This strategic focus on AI, coupled with strong cloud adoption, positions Microsoft for continued expansion. Despite a slight decrease in the More Personal Computing segment, mainly due to a decline in Xbox content and services and hardware sales, the company's overall revenue grew by a solid 18%, reaching $331.8 billion. Microsoft also returned substantial capital to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value.

Key Highlights

  • 1Microsoft Cloud revenue increased by 27% to $214.4 billion in fiscal year 2026.
  • 2Azure and other cloud services revenue experienced a substantial 41% growth.
  • 3Microsoft 365 Commercial and Consumer cloud revenues grew by 16% and 28% respectively.
  • 4Total revenue increased by 18% to $331.8 billion, driven by cloud segment growth.
  • 5The company returned $10.2 billion to shareholders in Q4 FY2026 through share repurchases and dividends.
  • 6Significant investments continue in AI infrastructure and talent to support product development and AI offerings.
  • 7Activision Blizzard acquisition completed in October 2023, integrated into the More Personal Computing segment, accelerating gaming business growth.

Frequently Asked Questions

The primary growth driver for Microsoft in FY2026 was its Microsoft Cloud offerings, particularly Azure, which saw a 41% increase in revenue. Growth in Microsoft 365 Commercial and Consumer cloud services also contributed significantly to the 18% overall revenue increase.

Microsoft is heavily investing in AI across its business. This includes integrating AI capabilities like Microsoft 365 Copilot into its productivity suite and expanding its Azure AI offerings. The company is also investing in AI infrastructure, talent, and data to support product development and its strategic partnership with OpenAI.

The acquisition of Activision Blizzard, completed in October 2023, is integrated into the More Personal Computing segment. While the provided filing does not detail its specific FY2026 revenue contribution, it is expected to accelerate growth in Microsoft's gaming business across various platforms and ecosystems.

In the fourth quarter of fiscal year 2026, Microsoft returned $10.2 billion to shareholders through share repurchases and dividends. For the full fiscal year 2026, the company declared dividends totaling $27.0 billion and repurchased shares valued at $16.7 billion.