Filing Flows › Microsoft (MSFT) › Q4 FY26 › vs Q3 FY26
Microsoft (MSFT) Q4 FY26 vs Q3 FY26 (quarter over quarter)
Microsoft's revenue rose $7.1B (+9%) from $82.9B in Q3 FY26 to $90.0B in Q4 FY26. The biggest changes: Service Other +$5.0B (+7%); Linked in Corporation +$357M (+7%); Dynamics Products and Cloud Services +$82.0M (+4%). Gross margin 67.2% against 67.6% (-0.4 pts).
Microsoft, Q4 FY26: revenue $90.0B (+18% year over year), operating margin 45.1%, net earnings $35.8B, operating cash flow $55.4B. The chart draws each line against Q3 FY26, the increases inside each band.
Margins
| Q4 FY26 | Q3 FY26 | Change | |
|---|---|---|---|
| Gross margin | 67.2% | 67.6% | -0.4 pts |
| Operating margin | 45.1% | 46.3% | -1.2 pts |
| Net margin | 39.7% | 38.3% | +1.4 pts |
| Free cash flow margin | 21.8% | 19.1% | +2.8 pts |
Every line
| Line | Q4 FY26 | Q3 FY26 | Change | % |
|---|---|---|---|---|
| Service Other | $72.8B | $67.8B | $5.0B | +7% |
| Linked in Corporation | $5.2B | $4.8B | $357M | +7% |
| Windows and Devices | $4.0B | $4.0B | −$28.0M | -0.7% |
| Search Advertising | $3.9B | $3.8B | $51.0M | +1% |
| Dynamics Products and Cloud Services | $2.4B | $2.3B | $82.0M | +4% |
| Enterprise and Partner Services | $2.1B | $2.1B | $26.0M | +1% |
| Revenue | $90.0B | $82.9B | $7.1B | +9% |
| Gross profit | $60.5B | $56.1B | $4.4B | +8% |
| Cost of revenue | $29.5B | $26.8B | $2.7B | +10% |
| Other income, net | $3.4B | $942M | $2.5B | +266% |
| Operating profit | $40.6B | $38.4B | $2.2B | +6% |
| Operating expenses | $19.9B | $17.7B | $2.2B | +13% |
| Pre-tax earnings | $44.0B | $39.3B | $4.7B | +12% |
| Research & development | $10.0B | $8.9B | $1.1B | +12% |
| Sales & marketing | $7.6B | $6.8B | $781M | +11% |
| General & admin | $2.3B | $1.9B | $356M | +18% |
| Net earnings | $35.8B | $31.8B | $4.0B | +13% |
| Income tax | $8.3B | $7.6B | $719M | +10% |
| Depreciation & amortization | $11.3B | $10.1B | $1.2B | +12% |
| Share-based compensation | $3.1B | $3.1B | $41.0M | +1% |
| Working capital & other | $5.3B | $1.7B | $3.5B | +205% |
| Operating cash flow | $55.4B | $46.7B | $8.8B | +19% |
| Free cash flow (OCF − capex) | $19.6B | $15.8B | $3.8B | +24% |
| Capital expenditures | $35.8B | $30.9B | $4.9B | +16% |
Questions
How much did Microsoft's revenue grow quarter over quarter in Q4 FY26?
Microsoft's revenue rose $7.1B (+9%) from $82.9B in Q3 FY26 to $90.0B in Q4 FY26.
What drove Microsoft's revenue change in Q4 FY26?
Service Other +$5.0B (+7%); Linked in Corporation +$357M (+7%); Dynamics Products and Cloud Services +$82.0M (+4%).