Analyst shifts stance on MSFT after fiscal 2026 results show 18% revenue growth and AI business surpassing $100 billion annually.
Microsoft reported fiscal 2026 revenue of $331 billion, up 18% year over year, with operating income rising 21% to $155 billion. Net income reached $133.7 billion, driven by strong growth in cloud and AI segments.
The company’s Intelligent Cloud segment grew 32%, with Azure revenue exceeding $100 billion annually. AI-related revenue hit $90 billion, defying earlier skepticism about its long-term impact. EPS growth remained above 20%, even excluding gains from OpenAI and Anthropic investments.
The results contrast with prior expectations of slowing growth, reinforcing Microsoft’s position as a leader in AI and cloud computing.