Microsoft’s Q4 2026 sees cloud revenue rise 27% to about 9.7 trillion won, total revenue reaches about 14.7 trillion won, but Xbox struggles

Microsoft posted stronger-than-expected Q4 FY2026 results, with revenue of $90B, operating income of $40.6B, and net income of $35.8B, each up 18% year over year.

Microsoft Cloud grew 27% to $59.3B, while Azure and other cloud services jumped 43%, underscoring the company’s momentum in cloud and AI.

Weakness persisted in legacy hardware and gaming: Xbox content and services revenue fell 10%, Xbox console sales dropped 14%, and Windows OEM and devices declined 7%.

The results highlight a business increasingly driven by cloud and AI, even as Xbox and Windows-related segments continue to lag.