Microsoft Q2 Revenue Rises 17%, EPS Tops Estimates; Cloud Guidance Boost
Microsoft reported fiscal Q2 2026 revenue rose 17% year-over-year, driven by cloud and AI demand, with adjusted EPS of $4.14 topping the $3.92 estimate. Intelligent Cloud revenue reached $32.91 billion, Azure grew 38% on a constant-currency basis, and Q3 guidance of $80.65–81.75 billion implies 15–17% growth.
1. Fiscal Q2 2026 Earnings
Microsoft’s fiscal Q2 2026 revenue climbed 17% year-over-year, driven by stronger demand for its cloud services and AI solutions. Adjusted EPS reached $4.14, surpassing the consensus $3.92 estimate and marking a sequential improvement in profitability.
2. Intelligent Cloud Performance and Q3 Guidance
Intelligent Cloud revenue totaled $32.91 billion, above the $32.39 billion forecast, while Azure and other cloud services grew 38% in constant currency. For fiscal Q3, Microsoft issued revenue guidance of $80.65 to $81.75 billion, reflecting 15–17% year-over-year growth and projected Azure expansion of 37–38%.