Q1 26 EPS
$4.13
BEAT +12.78%
Est. $3.66
Q1 26 Revenue
$77.67B
BEAT +3.03%
Est. $75.39B
vs S&P Since Q1 26
-26.0%
TRAILING MARKET
MSFT -20.0% vs S&P +6.0%
Market Reaction
Did MSFT Beat Earnings? Q1 2026 Results
Microsoft delivered a convincing fiscal first quarter for 2026, posting non-GAAP diluted EPS of $4.13 against a consensus estimate of $3.66, a 12.78% beat, while revenue climbed 18.4% year-over-year to $77.67 billion, ahead of the $75.39 billion Wall… Read more Microsoft delivered a convincing fiscal first quarter for 2026, posting non-GAAP diluted EPS of $4.13 against a consensus estimate of $3.66, a 12.78% beat, while revenue climbed 18.4% year-over-year to $77.67 billion, ahead of the $75.39 billion Wall Street had expected. The standout driver was cloud and AI momentum: Azure grew 40% in the quarter, lifting Intelligent Cloud segment revenue to $30.90 billion, while total Microsoft Cloud revenue reached $49.10 billion, up 26%. Perhaps the most forward-looking signal was commercial remaining performance obligations surging 51% to $392.00 billion, underscoring the depth of contracted demand still to be recognized. The quarter also brought significant structural news, widely anticipated by investors, as Microsoft restructured its OpenAI partnership, securing extended IP rights through 2032 and an incremental $250 billion Azure services commitment from OpenAI, even as capital expenditures rose sharply to $19.39 billion to support the AI infrastructure buildout underpinning that growth.
Key Takeaways
- • Azure and other cloud services revenue grew 40% (39% constant currency)
- • Microsoft Cloud revenue grew 26% to $49.1 billion
- • Microsoft 365 Consumer cloud revenue grew 26%
- • Microsoft 365 Commercial cloud revenue grew 17%
- • Commercial remaining performance obligation increased 51% to $392 billion
- • Search and news advertising revenue ex-TAC grew 16%
- • Dynamics 365 revenue grew 18%
MSFT YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
MSFT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact. It's why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”
— Satya Nadella, Q1 2026 Earnings Press Release
MSFT Earnings Trends
MSFT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MSFT EPS Trend
Earnings per share: estimate vs actual
MSFT Revenue Trend
Quarterly revenue: estimate vs actual
MSFT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $4.27 | — | $82.89B | +1.79% |
| Q2 26 BEAT | $3.85 | $4.14 | +7.57% | $81.27B | +1.24% |
| Q1 26 BEAT | $3.66 | $4.13 | +12.78% | $77.67B | +3.03% |
| Q4 25 BEAT FY | $3.38 | $3.65 | +7.99% | $76.44B | — |
| FY Full Year | $13.41 | $13.64 | +1.73% | $281.72B | +0.95% |
| Q3 25 BEAT | $3.22 | $3.46 | +7.59% | $70.07B | +2.37% |