GAAP net income increased 60% to $38.5 billion, or $5.16 per share, versus the prior-year quarter. Adjusted EPS increased 24% to $4.14.
Revenue and earnings beat expectations but the stock fell over 4% in aftermarket hours on Wednesday.
“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. We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.” – Satya Nadella, Chairman and CEO.
Microsoft Cloud revenue increased 26% to $51.5 billion.
Revenue in Productivity and Business Processes increased 16% to $34.1 billion while revenue in Intelligent Cloud was $32.9 billion, up 29% YoY. Revenue in More Personal Computing decreased 3% to $14.3 billion.
Microsoft returned $12.7 billion to shareholders in the form of dividends and share repurchases in Q2 2026.