Microsoft reported Q2 FY26 revenue of $81.3 billion, up 17% year-over-year, and non-GAAP EPS of $4.14. These results were driven by continued momentum in the company's cloud businesses, exceeding analyst estimates.

Key Highlights

  • Strength was led by the Intelligent Cloud segment, where Azure and other cloud services revenue grew 39% (38% in constant currency), beating guidance of approximately 37%.
  • Overall Microsoft Cloud revenue reached $51.5 billion for the quarter, an increase of 26% year-over-year, demonstrating broad-based demand.
  • The company's commercial remaining performance obligation (RPO) increased 110% to $625 billion, signaling a significant expansion of future contracted revenue.