Microsoft beats Wall Street expectations with $90B in revenue

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Microsoft beats Wall Street expectations with $90B in revenue

2026-07-30 07:30 Last Updated At：07:40

Microsoft posted strong results for its quarterly earnings on Wednesday, beating expectations and showing strong growth in its cloud computing platform and a boost in paid AI users.

The Redmond, Washington, company earned $90 billion, or $4.81 per share, in the April-June quarter. That is up 18% from the same period a year earlier. Analysts surveyed by FactSet Research had expected the company to earn $4.24 per share on revenue of $87.62 billion this quarter.

Microsoft Cloud revenue was $59.3 billion this quarter, up 27% year-over-year. That growth reflects the demand across Microsoft's cloud computing platform Azure, as well as its first-party AI applications and services. Azure and other cloud services revenue increased 43%.

For the full fiscal year, which closed out at the end of June, the company brought in $331.8 billion in revenue.

“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,” CEO Satya Nadella said in a statement Wednesday.

The concurrent Azure and Copilot growth indicate that Microsoft is “winning on both fronts,” Michael J. Wolf, founder and CEO of Activate Consulting said in a statement. Microsoft is doing so by “supplying the cloud infrastructure for enterprise AI while monetizing the AI tools embedded in the products workers use every day.”

Investors had been looking for evidence that Azure and Copilot, Microsoft's flagship AI assistant, could eventually produce returns as concerns about high AI spending have steadily grown across the industry.

Chief financial officer Amy Hood told investors on a call that the company’s capital expenditures and investment expectations remain unchanged for the 2026 calendar year. An accounting change will bring that guidance closer to approximately $175 billion, Hood said, but in practice, the expectations remain “unchanged.” This move marks a break from competitors that have been steadily increasing their spending forecasts.

Hood said earlier this year that the company expects to invest $190 billion in capital expenditures in 2026, a figure that includes approximately $25 billion from the impact of higher component pricing. Microsoft's capital expenditures were $41 billion this quarter.

Bryan Hayes, an investment strategist at Zacks Investment Research, said in a statement that “for the first time in three quarters, the market appears willing to grant that the spending is buying something real.”

“We remain very confident in the long-term return on these investments, given these strong demand signals, the increasing product usage we’ve seen and the efficiencies that we’re driving across the platform,” said Danielle Criste, Microsoft's director of investor relations, in an interview.

Microsoft’s shares rose about 9% to $426.03 in after-hours trading.

Police: Bullets that killed 2 bystanders at Seattle festival weren't from teen shooter's gun

SEATTLE (AP) — The bullets that killed two bystanders during a shootout at a crowded Seattle food festival last weekend do not appear to have come from the gun that a 15-year-old arrested at the scene was firing, police said in court documents filed Wednesday.

The King County prosecutor’s office filed charges of first-degree assault with a firearm enhancement as well as unlawful possession of a handgun by someone under 18. In a statement supporting the charges, police said the teen was seen firing an untraceable ghost gun into a crowd, but preliminary testing of bullets recovered from the two bystanders killed showed they did not match that weapon.

Shell casings found at the scene of Sunday’s shooting indicate four weapons were fired during the shootout, the document said.

Police say a 19-year-old suspect died in the gunbattle, and that as police escorted the 15-year-old past that suspect's body, the 15-year-old said, “Love you bro.”

Police have been trying to identify at least one other person involved in the shooting. The statement did not indicate who might have fired the bullets that killed the bystanders.

The shooting in the waning hours of the three-day Bite of Seattle festival left three people dead, including a 19-year-old gunman, and at least four people injured, including a toddler. Authorities say they believe the violence was gang-related, and they are reviewing any available surveillance video and interviewing victims and witnesses in an effort to identify others who may have been involved.

An eighth person with a possible gunshot wound checked themself into a Seattle hospital after the shooting, but checked out before investigators could conduct an interview, Police Chief Shon Barnes said Tuesday. Legal obstacles have prevented detectives from obtaining the patient’s identity, he added. It’s unclear if the injury was related to the festival shooting or whether the person might have been involved in it, but Barnes asked for the person to come forward and speak with investigators.

Prosecutors on Wednesday asked a judge to move the case to adult court, a decision that can take months after the judge considers arguments from both sides.

If the teen is convicted as an adult, the charges would carry a sentencing range of about eight to 10 years in prison, plus possibly another five years for the firearm enhancement. However, judges in Washington may also choose to sentence juveniles as juveniles even if they are convicted in adult court.

In juvenile court, the charges would carry a sentencing range of two to 2 1/2 years. It was not immediately clear whether the firearm enhancement might add additional time in juvenile detention.