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Microsoft Corporation

Microsoft Corporation Q2 2026 Earnings Analysis

Reported on 2026-01-28 / Fiscal Quarter Q2 2026
Revenue Up YoY Sequential Improvement Margin Improving EPS Up YoY Strong Quarter
Microsoft Corporation delivered a constructive Q2 2026, with growth supported by improving profitability.

Revenue grew 16.7% year over year and rose 4.6% sequentially. Margins improved from the previous quarter, suggesting stronger cost discipline and operational efficiency. Microsoft Corporation also posted year-over-year earnings growth, reinforcing a more resilient operating profile.

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Source: Company filings / processed earnings data
Revenue
$81.3B
YoY: 16.7179%
QoQ: 4.6348%
Net Income
$38.5B
YoY: 59.5238%
QoQ: 38.6%
EPS (Diluted)
$5.16
YoY: 59.75%
Net Margin
47.3%
YoY: 12.7 pts
QoQ: 11.6 pts
Gross Margin
68%
Operating Margin
47.1%
Growth

Revenue trend

Revenue growth stayed positive, supporting a healthier topline trend.

Profitability

Margin and earnings quality

Margins improved from last quarter, suggesting that cost controls are starting to offset topline weakness.

Investor Focus

What matters next

Investors will continue watching execution quality.

Revenue & YoY Growth

Quarterly

Revenue trend and year-over-year growth across recent reported quarterly periods.

Net Income & Net Margin

Quarterly

Net income and net margin trend over recent reported quarterly periods.

Revenue Analysis

Microsoft Corporation reported $81.3B in revenue for Q2 2026, up 16.7% YoY and up 4.6% QoQ. Positive year-over-year growth suggests healthier revenue momentum.

Revenue Snapshot
Current Quarter $81.3B
Previous Quarter $77.7B
Same Quarter Last Year $69.6B
YoY Change +16.7%
QoQ Change +4.6%

Profitability Analysis

Net income came in at $38.5B, up 59.5% YoY and up 38.6% QoQ. Net margin was 47.3%. Sequential margin improvement suggests stronger operating discipline despite a mixed revenue environment.

Profitability Snapshot
Net Income $38.5B
EPS $5.16
Net Margin 47.3%
QoQ Margin Change +11.6 pts

Frequently Asked Questions

Quick factual answers for this report. Need the why behind them? Ask the report assistant.

What was Microsoft Corporation's revenue in Q2 2026?

Microsoft Corporation reported revenue of $81.3B in Q2 2026.

What was Microsoft Corporation's net income in Q2 2026?

Microsoft Corporation reported net income of $38.5B in Q2 2026.

How did Microsoft Corporation's revenue change year over year?

Microsoft Corporation's revenue increased by 16.7% year over year in Q2 2026.

What was Microsoft Corporation's net margin in Q2 2026?

Microsoft Corporation's net margin was 47.3% in Q2 2026.

Related
Microsoft Corporation Q1 2026 Earnings

Compare this quarter with the previous earnings report.

Related
Microsoft Corporation Company Overview

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Related
Microsoft Corporation Revenue & Profit Trends

View more quarterly financial trend pages for this company.

Data Source & Methodology

Financial data is sourced from company filings and internal processed earnings data.

YoY and QoQ values are derived from reported quarterly figures when not directly available.

This page is for informational purposes only and does not constitute investment advice.

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