Microsoft fourth quarter fiscal 2026 earnings explained: segments, EPS and valuation multiples
Microsoft earned $35,766 million on $90,007 million of revenue in the quarter ended June 30, 2026, the last of its 2026 fiscal year. A look back at its three segments, its EPS and what the numbers say about valuation.
Microsoft reported results for the fourth quarter of its 2026 fiscal year on July 29, 2026. Its fiscal year runs from July to June, so this quarter covers the three months ended June 30, 2026. Microsoft has since reported the first quarter of fiscal 2027, on October 28, 2026, and a separate Dalsna Finance article covers those results. This article looks back at the June quarter and compares it with the third quarter, the three months ended March 31, 2026. Revenue rose 8.6% quarter over quarter and GAAP net income rose 12.5% (Dalsna Finance calculation). Every figure is sourced and dated, and every number worked out by us is labelled as a Dalsna Finance calculation. [1][2][3]
Microsoft in brief
Microsoft Corporation is based in Redmond, Washington, and its shares trade on the Nasdaq under the ticker MSFT. It sells software, cloud services and devices. Names found in its annual report and earnings release include Microsoft 365, Azure, GitHub cloud services, LinkedIn, Dynamics 365, Windows, Surface, XBOX, Bing, Copilot and Microsoft Edge. [1][4]
In the release, chief executive Satya Nadella said that over the year "Azure revenue surpassed $100 billion for the first time" and that Microsoft 365 Copilot passed 30 million paid seats. Chief financial officer Amy Hood pointed to Microsoft Cloud revenue of $59.3 billion for the quarter, up 27% from a year earlier, as reported by the company. [1]
The three segments
For fiscal 2026 Microsoft reported three segments. Productivity and Business Processes holds its productivity, communication and information products, including Microsoft 365 for businesses and consumers, LinkedIn and Dynamics 365. Intelligent Cloud holds its server products and cloud services for businesses and developers, led by Azure and other cloud services, plus enterprise and partner services. More Personal Computing holds Windows and Devices (Windows licences sold through PC makers, plus Surface and PC accessories) and XBOX content and services. It also holds Search advertising, which covers Bing, Copilot, Microsoft News and Microsoft Edge. [4][1]
Quarter over quarter, Intelligent Cloud grew fastest: revenue rose 13.3% to $39,306 million and operating income rose 16.0% to $15,955 million. Productivity and Business Processes revenue rose 8.1% to $37,847 million. More Personal Computing revenue fell 2.6% to $12,854 million and its operating income fell 25.2% to $2,748 million (Dalsna Finance calculation for the percentages). [1][2]
Microsoft describes its drivers against the same quarter a year earlier, not against the quarter before. On that basis it reported Azure and other cloud services revenue up 43% and Microsoft 365 Commercial cloud revenue up 14%. More Personal Computing revenue fell 4%, with Windows OEM and Devices down 7% and XBOX content and services down 10%, while Search advertising revenue excluding traffic acquisition costs rose 10%. [1]
| Segment and measure | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Productivity and Business Processes revenue | 35,013 | 37,847 | Up 2,834 | Up 8.1% |
| Productivity and Business Processes operating income | 20,973 | 21,900 | Up 927 | Up 4.4% |
| Intelligent Cloud revenue | 34,681 | 39,306 | Up 4,625 | Up 13.3% |
| Intelligent Cloud operating income | 13,753 | 15,955 | Up 2,202 | Up 16.0% |
| More Personal Computing revenue | 13,192 | 12,854 | Down 338 | Down 2.6% |
| More Personal Computing operating income | 3,672 | 2,748 | Down 924 | Down 25.2% |
As reported by Microsoft in its third and fourth quarter fiscal 2026 earnings releases, under the three segments it used at the time. The two change columns are a Dalsna Finance calculation: Change is Q4 FY2026 minus Q3 FY2026, and Change (%) is that change divided by the Q3 FY2026 figure, times 100, rounded to one decimal at the end. [1][2]
The numbers, quarter over quarter
Revenue was $90,007 million in the fourth quarter of fiscal 2026, against $82,886 million in the third. Gross margin, which Microsoft uses for revenue minus the direct cost of what was sold, rose 7.9% to $60,482 million. Operating income, which also takes off research, sales and administrative costs, rose 5.7% to $40,603 million. Net income under GAAP, the standard US accounting rules, rose 12.5% to $35,766 million (Dalsna Finance calculation for the changes). [1][2]
Net income grew faster than operating income because of other income, which sits below the operating line. It was $3,444 million in the fourth quarter against $942 million in the third, a rise of $2,502 million. In its release Microsoft said several discrete items, set against the guidance it gave on April 29, 2026, added $0.27 to diluted EPS. They included a $3.2 billion gain on its investment in Anthropic and lower than expected costs for its Voluntary Retirement Program, partially offset by severance costs and impairment charges in XBOX. [1][2]
Profit margin is net income as a share of revenue: 39.7% in the fourth quarter against 38.3% in the third (Dalsna Finance calculation: $35,766 million divided by $90,007 million, and $31,778 million divided by $82,886 million). The operating margin, operating income divided by revenue, fell to 45.1% from 46.3%. Against the fourth quarter of fiscal 2025, Microsoft reported revenue up 18% from $76,441 million and net income up 31% from $27,233 million. [1][2]
| Measure | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Revenue | 82,886 | 90,007 | Up 7,121 | Up 8.6% |
| Gross margin (revenue minus cost of revenue) | 56,058 | 60,482 | Up 4,424 | Up 7.9% |
| Operating income | 38,398 | 40,603 | Up 2,205 | Up 5.7% |
| Other income (expense), net | 942 | 3,444 | Up 2,502 | Up 265.6% |
| Net income (GAAP) | 31,778 | 35,766 | Up 3,988 | Up 12.5% |
| Net income, adjusted (non GAAP, without OpenAI) | 31,792 | 35,286 | Up 3,494 | Up 11.0% |
| Profit margin (net income divided by revenue) | 38.3% | 39.7% | Up 1.4 points | Not meaningful |
| Adjusted profit margin (adjusted net income divided by revenue) | 38.4% | 39.2% | Up 0.8 points | Not meaningful |
| Operating margin (operating income divided by revenue) | 46.3% | 45.1% | Down 1.2 points | Not meaningful |
| Weighted average diluted shares (millions) | 7,445 | 7,443 | Down 2 | Down less than 0.1% |
As reported by Microsoft, except the three margin rows and the two change columns, which are a Dalsna Finance calculation. Change is Q4 FY2026 minus Q3 FY2026 in the row's own unit, in percentage points for the margin rows. Change (%) is that change divided by the Q3 FY2026 figure, times 100. Both are worked from the figures as filed and rounded only at the end. Change (%) is not meaningful for the margin rows, which are already percentages. [1][2]
The full fiscal year
For the twelve months ended June 30, 2026, Microsoft reported revenue of $331,839 million, up 18%. Operating income was $155,237 million, up 21%, and net income was $133,749 million, up 31%. Diluted EPS for the year was $17.95. Its annual report says Microsoft Cloud revenue rose 27% to $214.4 billion and commercial remaining performance obligation, contracted revenue not yet recognised, rose 84% to $678 billion. [1][4]
The annual report puts most of the year's revenue growth down to Microsoft Cloud, with Azure behind the rise in Intelligent Cloud and Microsoft 365 Commercial cloud behind the rise in Productivity and Business Processes. More Personal Computing revenue fell, mainly on XBOX, partly offset by growth in Search advertising. The report also says other income for the year included $6.5 billion of net gains from investments in OpenAI, mostly a dilution gain tied to the OpenAI Recapitalization. [4]
Note 14 of the annual report says Microsoft had accrued $553 million of aggregate legal liabilities at June 30, 2026, and that further adverse outcomes of about $400 million in aggregate are reasonably possible. It also describes LinkedIn's appeal against a 2024 decision and fine by the Irish Data Protection Commission. [4]
Cash flow and capital spending
Cash from operations was $55,441 million in the fourth quarter, up from $46,679 million in the third. Additions to property and equipment, the cash spent on physical assets, were $35,802 million against $30,876 million. For the full year they came to $115,948 million against $64,551 million in fiscal 2025. Cash paid for share repurchases was $4,579 million in the fourth quarter and cash dividends paid were $6,758 million. [1][2]
| Measure | Q3 FY2026 | Q4 FY2026 | Change | Change (%) |
|---|---|---|---|---|
| Net cash from operations | 46,679 | 55,441 | Up 8,762 | Up 18.8% |
| Additions to property and equipment | 30,876 | 35,802 | Up 4,926 | Up 16.0% |
| Common stock repurchased (cash paid) | 4,627 | 4,579 | Down 48 | Down 1.0% |
| Common stock cash dividends paid | 6,756 | 6,758 | Up 2 | Up less than 0.1% |
As reported by Microsoft in its cash flow statements, where these are cash amounts for the quarter. The two change columns are a Dalsna Finance calculation, worked as in the table above and rounded to one decimal at the end. [1][2]
Earnings per share
Earnings per share, or EPS, is profit divided by the number of shares. The diluted figure also counts shares that could be created from stock awards. Microsoft reported diluted EPS of $4.81 for the fourth quarter of fiscal 2026 and $4.27 for the third. Dividing net income by the diluted share count gives the same figures. [1][2]
Microsoft also reports adjusted (non GAAP) net income and EPS. Its only adjustment takes out the effect of its investments in OpenAI. In the fourth quarter net gains from OpenAI added $480 million to net income and $0.07 to diluted EPS, so adjusted EPS was $4.74. In the third quarter OpenAI lowered net income by $14 million and adjusted EPS was the same $4.27 as GAAP EPS. The adjustment does not take out other investment gains, such as the Anthropic gain in the fourth quarter. [1][2]
- Common stock outstanding on the cover of Microsoft's annual report for fiscal 2026: 7,425,545,491 shares
- Microsoft has one class of common stock
About 7,425.5 million shares
From the cover of Microsoft's annual report for the fiscal year ended June 30, 2026. Every per share figure, multiple and share price in this article uses this one count, unrounded. [4]
| Quarter | Net income (US dollars in millions) | Weighted average diluted shares (millions) | Net income divided by diluted shares | Diluted EPS as reported | Adjusted net income (US dollars in millions) | Adjusted diluted EPS as reported |
|---|---|---|---|---|---|---|
| Q3 FY2026 | 31,778 | 7,445 | $4.27 | $4.27 | 31,792 | $4.27 |
| Q4 FY2026 | 35,766 | 7,443 | $4.81 | $4.81 | 35,286 | $4.74 |
Net income, adjusted net income, shares and reported EPS as reported by Microsoft. Adjusted figures leave out the effect of investments in OpenAI. The division column is a Dalsna Finance calculation, rounded to the cent. [1][2]
- Adjusted diluted EPS (as reported): Non GAAP. Leaves out the effect of investments in OpenAI.
| Diluted EPS (GAAP, as reported) | Adjusted diluted EPS (as reported) | |
|---|---|---|
| Q3 FY2026 | $4.27 | $4.27 |
| Q4 FY2026 | $4.81 | $4.74 |
As reported by Microsoft. The arithmetic is in the table above. [1][2]
What the market values Microsoft at
Market capitalization, or market cap, is what the stock market values the whole company at: the share price times the number of shares. Microsoft's shares closed at $521.91 on Friday, October 30, 2026, as reported by StockAnalysis. The cover of its annual report lists 7,425,545,491 shares outstanding as of July 23, 2026. That gives a market cap of about $3.88 trillion (Dalsna Finance calculation). Every multiple and share price below uses this one share count. [5][4]
Keep the timing in mind. The price is from two days after the first quarter fiscal 2027 results came out, so it reflects news that is not in this article. The earnings behind every multiple stop at June 30, 2026, and the share count is the one on the annual report's cover. The multiples below are therefore today's price set against the fourth quarter's numbers, not a current valuation on the latest results. [5][3][4]
- Closing price of $521.91 on October 30, 2026, as reported by StockAnalysis
- Times 7,425,545,491 shares outstanding on July 23, 2026
Market cap of about $3,875.5 billion, or about $3.88 trillion
Dalsna Finance calculation, rounded at the end. The multiples below divide the unrounded market cap. [5][4]
Six valuation multiples
The price to earnings ratio, or P/E, is market cap divided by a year of earnings. It shows how many dollars the market is paying for each dollar of yearly profit. Annualised means one quarter multiplied by four. Fourth quarter net income of $35,766 million times 4 is $143,064 million, which gives a P/E of 27.1 (Dalsna Finance calculation: $3,875.5 billion divided by $143,064 million). On adjusted net income times 4, $141,144 million, the adjusted P/E is 27.5. [1][5][4]
A forward P/E uses an estimate of future earnings. Simply Wall St reported on August 1, 2026, three days after these results, that the 48 analysts covering Microsoft expected EPS of $19.64 for fiscal 2027. Multiplying that by the same 7,425.5 million shares gives estimated earnings of about $145,838 million and a forward P/E of 26.6 (Dalsna Finance calculation on an estimate, analyst consensus as reported by Simply Wall St). Simply Wall St calls these statutory forecasts, so this is a forward P/E on GAAP earnings. It gives no adjusted estimate, so we show no adjusted forward P/E. [6][5][4]
A trailing P/E, sometimes called a historical P/E, uses the last four reported quarters, here the whole of fiscal 2026. Net income for the year was $133,749 million, which gives a trailing P/E of 29.0. Adjusted net income was $128,786 million, for an adjusted trailing P/E of 30.1 (Dalsna Finance calculation). The adjusted figure is lower because Microsoft reported that OpenAI added $4,963 million to net income over the year. [1][5][4]
- Fourth quarter fiscal 2026 net income of $35,766 million times 4 is $143,064 million
- Market cap of $3,875.5 billion divided by $143,064 million
Annualised P/E of 27.1
Dalsna Finance calculation, using the unrounded market cap and rounded to one decimal. [1][5][4]
- Fourth quarter fiscal 2026 adjusted net income of $35,286 million times 4 is $141,144 million
- Market cap of $3,875.5 billion divided by $141,144 million
Adjusted annualised P/E of 27.5
Dalsna Finance calculation, using the unrounded market cap and rounded to one decimal. Adjusted net income is Microsoft's non GAAP figure without OpenAI. [1][5][4]
- Analyst consensus EPS for fiscal 2027 of $19.64, an estimate as reported by Simply Wall St on August 1, 2026
- Times 7,425.5 million shares is about $145,838 million of estimated earnings
- Market cap of $3,875.5 billion divided by $145,838 million
Forward P/E of 26.6
Dalsna Finance calculation on an estimate (analyst consensus, statutory, GAAP, as reported by Simply Wall St), using unrounded figures and rounded to one decimal. [6][5][4]
- Net income for fiscal 2026, the four quarters to June 30, 2026, was $133,749 million
- Market cap of $3,875.5 billion divided by $133,749 million
Trailing P/E of 29.0
Dalsna Finance calculation, using the unrounded market cap and rounded to one decimal. [1][5][4]
- Adjusted net income for fiscal 2026 was $128,786 million
- Market cap of $3,875.5 billion divided by $128,786 million
Adjusted trailing P/E of 30.1
Dalsna Finance calculation, using the unrounded market cap and rounded to one decimal. [1][5][4]
| Measure | Earnings used | Formula | Result |
|---|---|---|---|
| Annualised P/EUses Calculation 5: Annualised P/E | $143,064 million (Q4 FY2026 net income of $35,766 million times 4) | $3,875.5 billion divided by $143,064 million | 27.1 |
| Adjusted annualised P/EUses Calculation 6: Adjusted annualised P/E | $141,144 million (Q4 FY2026 adjusted net income of $35,286 million times 4) | $3,875.5 billion divided by $141,144 million | 27.5 |
| Forward P/E (estimate: analyst consensus EPS for fiscal 2027, reported August 1, 2026)Uses Calculation 7: Forward P/E on the fiscal 2027 consensus estimate | $145,838 million ($19.64 times 7,425.5 million shares) | $3,875.5 billion divided by $145,838 million | 26.6 |
| Adjusted forward P/E | The only estimate found is statutory (GAAP). No adjusted estimate was found. | Not calculated | Not calculated |
| Trailing P/E (fiscal 2026)Uses Calculation 8: Trailing P/E | $133,749 million of net income | $3,875.5 billion divided by $133,749 million | 29.0 |
| Adjusted trailing P/E (fiscal 2026)Uses Calculation 9: Adjusted trailing P/E | $128,786 million of adjusted net income | $3,875.5 billion divided by $128,786 million | 30.1 |
Dalsna Finance calculation. Market cap is $521.91 times 7,425,545,491 shares, about $3,875.5 billion. Multiples are rounded to one decimal. [5][4][1][6]
The last four quarters
The last four quarters are the four quarters of fiscal 2026. The second quarter, the three months ended December 31, 2025, stands out: GAAP net income of $38,458 million was well above adjusted net income of $30,875 million, because OpenAI investments added $7,583 million that quarter. The first quarter figures are worked out as the full year figure in the fourth quarter release minus the other three quarters (Dalsna Finance calculation). By that arithmetic OpenAI lowered first quarter net income by $3,086 million. [7][2][1]
| Quarter | Net income (GAAP) | Adjusted net income (non GAAP) |
|---|---|---|
| Q1 FY2026 (worked out) | 27,747 | 30,833 |
| Q2 FY2026 | 38,458 | 30,875 |
| Q3 FY2026 | 31,778 | 31,792 |
| Q4 FY2026 | 35,766 | 35,286 |
| Fiscal 2026, as reported | 133,749 | 128,786 |
Q2, Q3 and Q4 as reported by Microsoft in the earnings release for each quarter, and the fiscal year totals as reported in the fourth quarter release. The Q1 row is a Dalsna Finance calculation: the fiscal year figure minus the other three quarters. [7][2][1]
- Adjusted net income: Non GAAP. Leaves out the effect of investments in OpenAI.
| Net income (GAAP) | Adjusted net income | |
|---|---|---|
| Q1 FY2026 | 27,747 | 30,833 |
| Q2 FY2026 | 38,458 | 30,875 |
| Q3 FY2026 | 31,778 | 31,792 |
| Q4 FY2026 | 35,766 | 35,286 |
As reported by Microsoft, except Q1 FY2026, which is worked out as the fiscal year figure minus the other three quarters (Dalsna Finance calculation). The fiscal year total is not charted. [7][2][1]
Three base cases: the fourth quarter held flat for a year
Suppose revenue stayed at the fourth quarter's level for a full year, with no growth and no decline: $90,007 million times 4, or $360,028 million. The first base case keeps the 39.7% profit margin, which gives earnings of $143,064 million, or $19.27 per share on the cover share count. The second keeps the 39.2% adjusted profit margin, which gives $141,144 million, or $19.01 per share. Each is simply the fourth quarter annualised, so at its own annualised P/E it returns the October 30, 2026 close of $521.91 by construction. The other cells only show how the price moves when the same earnings get a different multiple. [1][5][4]
Fourth quarter net income was lifted by items below the operating line, including the $3.2 billion Anthropic gain that Microsoft named, which its adjusted figure does not remove. So there is a third case on the operating margin of 45.1%, operating income divided by revenue, which gives $162,412 million a year, or $21.87 per share. It leaves out taxes and other income entirely, so it is a pre tax figure set against after tax multiples. Microsoft also named severance costs, XBOX impairment charges and lower than expected retirement program costs inside the quarter but did not give their size, so they are pointed out here and not taken out. [1][4]
- Fourth quarter fiscal 2026 revenue of $90,007 million
- Times 4, with no growth and no decline
$360,028 million of revenue a year
Dalsna Finance calculation. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1]
- $360,028 million of revenue a year
- At the fourth quarter's profit margin of 39.7% ($35,766 million divided by $90,007 million, unrounded)
- Gives $143,064 million of earnings a year
- Divided by 7,425.5 million shares
$143,064 million a year, or $19.27 per share
Dalsna Finance calculation, using unrounded figures and rounded at the end. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1][4]
- $360,028 million of revenue a year
- At the fourth quarter's adjusted profit margin of 39.2% ($35,286 million divided by $90,007 million, unrounded)
- Gives $141,144 million of adjusted earnings a year
- Divided by 7,425.5 million shares
$141,144 million a year, or $19.01 per share
Dalsna Finance calculation, using unrounded figures and rounded at the end. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1][4]
- $360,028 million of revenue a year
- At the fourth quarter's operating margin of 45.1% ($40,603 million divided by $90,007 million, unrounded)
- Gives $162,412 million of operating income a year, before taxes and other income
- Divided by 7,425.5 million shares
$162,412 million a year, or $21.87 per share
Dalsna Finance calculation, using unrounded figures and rounded at the end. Taxes and other income are left out. Hypothetical arithmetic for illustration only. These are not forecasts, price targets or investment advice. [1][4]
- Uses Calculation 12: Base case earnings, net margin case
- Uses Calculation 5: Annualised P/E
- Uses Calculation 6: Adjusted annualised P/E
- Uses Calculation 7: Forward P/E on the fiscal 2027 consensus estimate
- Uses Calculation 8: Trailing P/E
- Uses Calculation 9: Adjusted trailing P/E
- Uses Calculation 13: Base case earnings, adjusted margin case
- Uses Calculation 14: Base case, operating margin case
Last close: $535.93, at the close on November 5, 2026, from the latest quote on our Microsoft page (MSFT).
| Base case | Year of earnings (US dollars in millions) | Per share | At annualised P/E of 27.1 | At adjusted annualised P/E of 27.5 | At forward P/E of 26.6 | At trailing P/E of 29.0 | At adjusted trailing P/E of 30.1 |
|---|---|---|---|---|---|---|---|
| Net margin case (GAAP net income)Uses Calculation 12: Base case earnings, net margin case, Calculation 5: Annualised P/E, Calculation 6: Adjusted annualised P/E, Calculation 7: Forward P/E on the fiscal 2027 consensus estimate, Calculation 8: Trailing P/E and Calculation 9: Adjusted trailing P/E | 143,064 | $19.27 | $521.91 (2.6% lower) | $529.01 (1.3% lower) | $511.98 (4.5% lower) | $558.26 (4.2% higher) | $579.77 (8.2% higher) |
| Adjusted margin case (adjusted net income)Uses Calculation 13: Base case earnings, adjusted margin case, Calculation 5: Annualised P/E, Calculation 6: Adjusted annualised P/E, Calculation 7: Forward P/E on the fiscal 2027 consensus estimate, Calculation 8: Trailing P/E and Calculation 9: Adjusted trailing P/E | 141,144 | $19.01 | $514.91 (3.9% lower) | $521.91 (2.6% lower) | $505.11 (5.8% lower) | $550.77 (2.8% higher) | $571.99 (6.7% higher) |
| Operating margin case (operating income, before tax)Uses Calculation 14: Base case, operating margin case, Calculation 5: Annualised P/E, Calculation 6: Adjusted annualised P/E, Calculation 7: Forward P/E on the fiscal 2027 consensus estimate, Calculation 8: Trailing P/E and Calculation 9: Adjusted trailing P/E | 162,412 | $21.87 | $592.49 (10.6% higher) | $600.55 (12.1% higher) | $581.22 (8.5% higher) | $633.76 (18.3% higher) | $658.18 (22.8% higher) |
Dalsna Finance calculation. Implied price is the P/E times a year of earnings divided by 7,425,545,491 shares, using unrounded figures and rounded to the cent. Revenue is $90,007 million times 4. Margins are 39.7%, 39.2% and 45.1% of revenue. The operating margin case leaves out taxes and other income. There is no adjusted forward P/E, so there is no column for it. [1][4][5][6]
Each percentage compares that hypothetical price with the price above, worked out from the rounded prices when this page was built. It is arithmetic, not a forecast.
Net margin case (GAAP net income)
Adjusted margin case (adjusted net income)
Operating margin case (operating income, before tax)
These are illustrations from the base case earnings held flat and the reference price shown, not forecasts or advice. Green bars sit above the reference price, red bars below and grey bars within 0.5% of it. The dashed line marks the reference price.
- Uses Calculation 12: Base case earnings, net margin case
- Uses Calculation 13: Base case earnings, adjusted margin case
- Uses Calculation 14: Base case, operating margin case
- Uses Calculation 5: Annualised P/E
- Uses Calculation 6: Adjusted annualised P/E
- Uses Calculation 7: Forward P/E on the fiscal 2027 consensus estimate
- Uses Calculation 8: Trailing P/E
- Uses Calculation 9: Adjusted trailing P/E
- Adjusted margin case: Adjusted net income, which leaves out the effect of investments in OpenAI.
- Operating margin case: Operating income before taxes and other income.
| Net margin case | Adjusted margin case | Operating margin case | |
|---|---|---|---|
| Annual P/E 27.1 | $521.91 | $514.91 | $592.49 |
| Adj ann P/E 27.5 | $529.01 | $521.91 | $600.55 |
| Fwd P/E 26.6 | $511.98 | $505.11 | $581.22 |
| Trail P/E 29.0 | $558.26 | $550.77 | $633.76 |
| Adj trl P/E 30.1 | $579.77 | $571.99 | $658.18 |
Dalsna Finance calculation, the same fifteen prices as the table above, at the annualised (Annual), adjusted annualised (Adj ann), forward (Fwd), trailing (Trail) and adjusted trailing (Adj trl) P/E. There is no adjusted forward P/E, so it has no bars. [1][4][5][6]
What came next
Microsoft's fourth quarter release gave no numeric guidance and said guidance would be given on its earnings call, which this article does not cover. Microsoft has since reported its first quarter of fiscal 2027, on October 28, 2026, and has moved to two new segments, recasting past figures to match. Those results are covered in a separate Dalsna Finance article, which is the place to look for whether capital spending kept rising and how other income moved. This article does not use any figures from after June 30, 2026 apart from the share price, the share count on the annual report's cover and the analyst estimate. [1][3][8]
How these figures were made: inputs come from Microsoft's earnings releases for the second, third and fourth quarters of fiscal 2026 and its annual report for fiscal 2026 on SEC EDGAR, plus the dated closing price and the dated consensus report named above. Calculations use unrounded inputs and are rounded only at the end, with multiples to one decimal and per share figures and prices to the cent. [1][2][7][4][5][6]
Companies in this article: Microsoft (MSFT)
Sources
- Microsoft Cloud and AI Strength Fuels Fourth Quarter Results (Form 8-K, Exhibit 99.1)
- Microsoft Cloud and AI Strength Fuels Third Quarter Results (Form 8-K, Exhibit 99.1)
- Microsoft Announces First Quarter Results (Form 8-K, Exhibit 99.1)
- Form 10-K for the fiscal year ended June 30, 2026
- Microsoft (MSFT) Stock Price History 1986-2026
- Earnings Update: Microsoft Corporation (NASDAQ:MSFT) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts
- Microsoft Cloud and AI Strength Drives Second Quarter Results (Form 8-K, Exhibit 99.1)
- Fiscal year 2026 annual report information recast for the new segments (Form 8-K, Exhibit 99.1)
Written by Dalsna Finance from the public sources listed above. Every figure is cited to its source or shown as a labelled Dalsna Finance calculation. How we work: editorial standards. General information, not investment advice.
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