Microsoft Q4 FY26: where the revenue came from and where it went
The whole income statement of Microsoft for this quarter, as one diagram: what earned the revenue, and what it went on.
- Period
- Apr 1 – Jun 30, 2026
- Reported
- Jul 29, 2026
Revenue$90.0B
+18% year over year
Gross profit$60.5B
67% margin
Operating profit$40.6B
45% margin
Net profit$35.8B
40% margin
Figures in billions of dollars.
The numbers
| Item | Value | Share of revenue | Year over year |
|---|---|---|---|
| Revenue | 90.0 | 100% | +18% |
| Server & cloud | 37.1 | 41% | +33% |
| Microsoft 365 commercial | 27.9 | 31% | +15% |
| 5.2 | 6% | +12% | |
| Xbox | 5.0 | 6% | −10% |
| Other | 4.6 | 5% | |
| Windows & devices | 4.0 | 4% | −7% |
| Search advertising | 3.9 | 4% | +7% |
| Dynamics | 2.4 | 3% | +11% |
| Cost of revenue | −29.5 | 33% | |
| Gross profit | 60.5 | 67% margin | −1pp |
| R&D | −10.0 | 11% | +0pp |
| Sales & marketing | −7.6 | 8% | −1pp |
| G&A | −2.3 | 3% | +0pp |
| Operating profit | 40.6 | 45% margin | +0pp |
| Other income, net | 3.4 | ||
| Tax | −8.3 | ||
| Net profit | 35.8 | 40% margin | +4pp |
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