Microsoft’s revenue was $331.8 billion in fiscal 2026 (year to 30 June 2026), up 18% from $281.7 billion in fiscal 2025. Azure ($101.9 billion) and Microsoft 365 cloud ($100.3 billion) were its two largest product lines that year. In the latest quarter, the three months to 30 September 2026, revenue was $92.3 billion, up 19%, reported for the first time under two new segments: Agents and Infra and Devices and Consumer.
How Microsoft makes money
What changed in 2025-26
Azure revenue grew 40% in fiscal 2026 to $101.9 billion, passing Microsoft 365 cloud. In the quarter to 30 September 2026 Azure revenue grew 48% to $33.2 billion.
In September 2026 Microsoft replaced Productivity and Business Processes, Intelligent Cloud and More Personal Computing with Agents and Infra and Devices and Consumer, and recast fiscal 2024-2026 in a Form 8-K filed on 28 October 2026.
Commercial remaining performance obligation, revenue contracted but not yet recognised, rose 73% to $677 billion at 30 September 2026.
Devices and Consumer revenue fell 3% to $15.5 billion in the quarter to 30 September 2026, with Windows OEM and devices down 22% and XBOX content and services down 2%, while search and advertising excluding traffic acquisition costs grew 12%.
Microsoft revenue by product line, fiscal years to 30 June
What it means for you
- Use the recast figures when you compare years: segment numbers published before October 2026 follow the old three-segment layout.
- Track Azure growth and the commercial backlog together; the backlog shows contracted demand that has not reached revenue yet.
- Read Microsoft 365 cloud revenue per user, not only seat counts, to judge whether Copilot adds paid value.
- If you sell on Azure or Microsoft 365, plan around Microsoft's push to bundle agents and models with its infrastructure.
- Treat the consumer side (XBOX, Windows OEM and devices) as a separate, slower business with its own cycle.
Microsoft’s revenue now rests on two subscription and consumption engines, Azure and Microsoft 365 cloud, and the new segment names say the company sees agents and infrastructure as one business. The Business Engineer view: in the AI economy the revenue line to watch is how fast contracted backlog turns into Azure consumption.
Read: Microsoft's Azure Re-Acceleration →Explore everything we publish →Related: Microsoft revenue breakdown · Microsoft profits · Microsoft business model · Microsoft organizational structure · Microsoft competitors
Frequently asked questions
What was Microsoft's revenue in fiscal 2026?
$331.8 billion for the year to 30 June 2026, up 18% from $281.7 billion in fiscal 2025.
What is Microsoft's biggest source of revenue?
Azure, with $101.9 billion in fiscal 2026, just ahead of Microsoft 365 cloud at $100.3 billion.
What was Microsoft's latest quarterly revenue?
$92.3 billion in the quarter to 30 September 2026, up 19%: $76.8 billion from Agents and Infra and $15.5 billion from Devices and Consumer.
Why did Microsoft change its segments?
Microsoft says the two new segments, announced in September 2026, match how it now manages the business; it recast fiscal 2024-2026 to the new layout.
Sources
- Microsoft Corporation (2026), Form 10-K for fiscal 2026, SEC
- Microsoft Corporation (28 October 2026), Form 8-K Exhibit 99.1, fiscal 2026 financial information recast to new segments, SEC
- Microsoft Corporation (28 October 2026), First quarter fiscal 2027 results, Form 8-K Exhibit 99.1, SEC
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Microsoft’s revenue was $331.8B in fiscal 2026 (year to June 30, 2026), up 18%: Productivity and Business Processes $140.0B, Intelligent Cloud $137.8B and More Personal Computing $54.1B.
Sources: Microsoft Form 10-K for fiscal 2026 (SEC EDGAR). Analysis by The Business Engineer.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
| Figure | Value |
|---|---|
| Revenue, fiscal 2026 filing | $331.8B |
| Growth vs fiscal 2025 calculated | +18% |
| Operating income, fiscal 2026 filing | $155.2B (47% margin) |
| Net income, fiscal 2026 filing | $133.7B |
Source: Microsoft Form 10-K (2026). Microsoft’s fiscal years end 30 June. Calculated figures are labelled.
Company explainer · Microsoft, explained
A 4-minute explainer of Microsoft's business model and latest numbers, built from its SEC filings. Analysis by The Business Engineer.
Older table, as previously published (figures may be out of date: see Key figures above)
| Product Line | 2023 |
| Server Products & Cloud Services | $79.97B |
| Office Products & Cloud Services | $48.73B |
| Windows | $21.50B |
| Gaming | $15.46B |
| $15.14B | |
| Search Advertising | $12.20B |
| Enterprise services | $7.72B |
| Devices | $5.52B |
| Other | $5.60B |
Microsoft in charts
More on Microsoft Revenues and its peers
Where the growth comes from
Intelligent Cloud, led by Azure, is the engine: in the June 2026 quarter it grew 32% to $39.3B, overtaking Productivity and Business Processes ($37.8B). Azure grew 43%.
Revenue history: $198.3B (fiscal 2022), $211.9B (2023), $245.1B (2024), $281.7B (2025) and $331.8B (2026).
See Microsoft revenue breakdown and Microsoft business model.
Earlier figures and background
