Microsoft announced on Wednesday that it posted $81.3 billion in revenue for the second quarter of fiscal year 2026, marking a 17% increase year-on-year, fueled primarily by strong growth in its cloud computing business.
The company’s GAAP net income surged to approximately $38.5 billion, up 60% compared to the same period last year. Microsoft’s fiscal year 2026 will conclude on June 30.
Cloud services remained a key driver, with Microsoft Cloud revenue reaching $51.5 billion, a 26% increase year-on-year. Meanwhile, the company’s commercial remaining performance obligation jumped 110% to $625 billion, highlighting robust future revenue visibility. The Intelligent Cloud segment generated $32.9 billion, up 29%, demonstrating continued demand for enterprise cloud solutions.
In other segments, Productivity and Business Processes revenue climbed to $34.1 billion (+16%), while More Personal Computing revenue slightly declined by 3% to $14.3 billion. On a GAAP basis, diluted earnings per share (EPS) rose 60% to $5.16, while non-GAAP EPS increased 24% to $4.14.
Microsoft Chairman and CEO Satya Nadella highlighted the company’s AI advancements, stating, “We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” emphasizing AI’s growing role across Microsoft’s entire technology stack.
The results underscore Microsoft’s continued leadership in cloud computing and AI, positioning the company for sustained growth in the rapidly evolving tech sector.