Microsoft Crushes Q4 Earnings Expectations

Microsoft's Q4 FY2026 earnings surpassed Wall Street expectations, as reported by the company. The tech giant saw its revenue grow 17.75% year-over-year to $90.01 billion, beating analysts' estimates by 2.71%. Non-GAAP adjusted EPS rose significantly.

The AI infrastructure investments made by Microsoft have been a key focus of the company's strategy. Leopold Aschenbrenner, founder of Situational Awareness LP, has credited AI infrastructure underpricing as the core thesis behind his fund's substantial returns. From its inception through mid-2026, the fund gained over 2,000%.

Microsoft delivered a quarterly performance that comprehensively beat Wall Street expectations. The company's core business profitability remains resilient despite a massive increase in AI infrastructure investments. Analysts' ratings for Microsoft remain strong, with many predicting continued growth and success.