Q2 26 EPS
$4.14
BEAT +7.57%
Est. $3.85
Q2 26 Revenue
$81.27B
BEAT +1.24%
Est. $80.28B
vs S&P Since Q2 26
-11.9%
TRAILING MARKET
MSFT -8.1% vs S&P +3.8%
Market Reaction
Did MSFT Beat Earnings? Q2 2026 Results
Microsoft posted a convincing fiscal second-quarter beat, with non-GAAP diluted EPS of $4.14 topping the $3.85 consensus by 7.57% and revenue of $81.27 billion edging past estimates by 1.24% on 16.7% year-over-year growth, though the stock's reaction… Read more Microsoft posted a convincing fiscal second-quarter beat, with non-GAAP diluted EPS of $4.14 topping the $3.85 consensus by 7.57% and revenue of $81.27 billion edging past estimates by 1.24% on 16.7% year-over-year growth, though the stock's reaction told a more complicated story. The standout driver was the Intelligent Cloud segment, which hauled in $32.91 billion, up 29% year-over-year, anchored by Azure's 39% revenue growth as enterprise and AI workloads continued migrating to Microsoft's infrastructure at an accelerating clip. Microsoft Cloud as a whole crossed $51.50 billion for the first time in a single quarter, rising 26%, while a jaw-dropping 110% surge in commercial remaining performance obligation to $625.00 billion signals an enormous committed revenue backlog stretching well into the future. Capital expenditures nearly doubled year-over-year to $29.88 billion, reflecting the scale of infrastructure investment required to sustain AI momentum, a level of spending that investors will be closely scrutinizing against Azure's forward growth guidance of 37% to 38% for the coming quarter.
Key Takeaways
- • Azure and other cloud services revenue grew 39% YoY
- • Microsoft Cloud revenue crossed $50 billion in a single quarter
- • Commercial remaining performance obligation surged 110% to $625 billion
- • Microsoft 365 Consumer cloud revenue grew 29% YoY
- • Microsoft 365 Commercial cloud revenue grew 17% YoY
- • Net gains from OpenAI investments of $7.6 billion boosted GAAP net income
- • Dynamics 365 revenue increased 19% YoY
MSFT YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
MSFT Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises.”
— Satya Nadella, Q2 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% |