u/Not69Batman ·
Reddit — r/stocks
· July 29, 2026 at 20:11
· ⬆ 56 pts
· 💬 37 comments
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AI Summary
Summary
Post summarizes Microsoft’s Q4 FY2026 earnings (revenue $90B, +18% YoY; EPS $4.81, +32% YoY) with highlights on Azure surpassing $100B annual revenue, M365 Copilot reaching 30M paid seats, and cloud backlog surging 84% to $678B.
Author is long MSFT since 2021 and presents the numbers as a positive update, implicitly reinforcing confidence in the company’s AI-driven growth trajectory.
Quality assessment: This is a data-rich earnings recap, not deep fundamental DD, but the numbers are sourced directly from the official release. It is well-structured but remains a news summary with a personal bullish bias—more “validated speculation” than rigorous independent analysis.
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Upvote %97%
▶ Full Post Text
MSFT Quarterly Results (Apr - Jun 2026):
Revenue = $90 billion (up 18% YoY)
Operating Income = $40.6 billion (up 18% YoY)
Net Income = $35.8 billion (up 31% YoY)
Earnings Per Share = $4.81 (up 32% YoY)
Stakeholder Equity = $442.4 billion (up 29% YoY)
Free Cash Flow = $19.6 billion (down 23% YoY)
“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”
"Microsoft Cloud revenue was $59.3 billion and increased 27%, and commercial remaining performance obligation increased 84% to $678 billion."
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Position: Long MSFT (since 2021). NFA.
Revenue grew 18% YoY, EPS surged 32%, Azure crossed $100B in annual revenue, cloud RPO (future revenue) jumped 84% to $678B, and Copilot hit 30M paid seats—all indicating strong demand for Microsoft’s AI and cloud products. This level of cloud backlog and recurring revenue growth signals multi-year visibility into top‑line expansion, while margins are expanding (net income +31% vs revenue +18%). The dip in free cash flow (-23% YoY) is likely from heavy AI capex, which should eventually convert to cash generation. The post reinforces a long‑term compounder thesis for MSFT. The combination of Azure/RPO momentum, Copilot adoption, and EPS acceleration supports holding or adding to positions on any pullback. Free cash flow decline may persist if capex stays elevated; competition from AWS/GCP or commoditization of AI; regulatory scrutiny; macro slowdown affecting enterprise IT spend.