MSFT Quarterly Results (Apr - Jun 2026):
Revenue = $90 billion (up 18% YoY)
Operating Income = $40.6 billion (up 18% YoY)
Net Income = $35.8 billion (up 31% YoY)
Earnings Per Share = $4.81 (up 32% YoY)
Stakeholder Equity = $442.4 billion (up 29% YoY)
CapEx = $41 billion (up 70% YoY)
Free Cash Flow = $19.6 billion (down 23% YoY)
“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”
"Microsoft Cloud revenue was $59.3 billion and increased 27%, and commercial remaining performance obligation increased 84% to $678 billion."
-------
Return On Invested Capital = 37%
Calculation: *ROIC = Net Operating Profit after Tax / Invested Capital = (Annualised Operating Income x (1 - Tax percentage)) / (Stakeholder Equity - Cash and short term investments) = (4 x 40.6 x (1 - 0.188)) / (442.4 - 76.8) = 131.9 / 365.6 = 37%*
--------
Position: Long MSFT (since 2021). NFA.