Microsoft’s Q4 2026 earnings report was good, but not great

Here are the year-over-year numbers:
- Revenue up 18% to $90.0 billion
- Net income up 31% to $35.8 billion
- Azure revenue up 43%
- Microsoft 365 Commercial cloud revenue up 16%
- Microsoft 365 Consumer cloud revenue up 24%
- LinkedIn revenue up 12%
- Windows OEM and Devices revenue down 7%
- Xbox content and services revenue down 10%
- Search and news advertising up 10%

Investors were happy that Azure growth is reaccelerating, shown in the chart below over the quarters, so they sent the stock up, but not too much, because capex is still a concern.

Full results: https://www.microsoft.com/en-us/Investor/earnings/FY-2026-Q4/press-release-webcast

I originally published this as a post on LinkedIn.