Microsoft (MSFT): Azure is now its biggest business, and OpenAI is in the numbers

Microsoft’s fiscal year ends on June 30. In fiscal 2026 — July 2025 to June 2026 — it brought in $331.8 billion of revenue, 17.8% more than the year before, and $133.7 billion of net income. At the Oct 1, 2026 close of $512.80, the company was worth $3.81 trillion. It describes its mission as “to empower every person and every organization on the planet to achieve more.”

Revenue by product

Server products and cloud services, which include Azure, are now the largest line and the fastest-growing big one, at 31.5%. Microsoft 365 for businesses is the second pillar. The two consumer-facing lines most people associate with the company — Windows and Xbox — together were less than 12% of revenue, and both shrank.

By reporting segment, Productivity and Business Processes earned $83.9 billion of operating profit on $140.0 billion of revenue (a 59.9% margin), Intelligent Cloud $57.0 billion on $137.8 billion (41.3%), and More Personal Computing $14.4 billion on $54.1 billion (26.6%). Operating profit for the whole company was $155.2 billion, a 46.8% margin. The United States accounted for 51.5% of revenue.

OpenAI, inside the profit line

Microsoft’s fiscal 2026 10-K puts numbers on its relationship with OpenAI: $24.1 billion of revenue came from its OpenAI agreements during the year, and $11.9 billion of a $13.0 billion funding commitment had been invested. The relationship also moved the bottom line. Fiscal 2026 net income includes a $5.0 billion gain related to OpenAI (from the dilution of Microsoft’s stake in OpenAI’s recapitalization); fiscal 2025 included $3.6 billion of OpenAI-related losses.

Reported net income rose 31%, from $101.8 billion to $133.7 billion. Without the OpenAI items in both years — $105.5 billion and $128.8 billion — the increase is 22%. That is the more useful number for judging the business.

Fifty years in a few lines

• Founded in 1975 and incorporated in Washington state on June 25, 1981.
• IPO on March 13, 1986, at $21.00 a share. Nine stock splits between 1987 and 2003 turned each IPO share into 288 shares.
• First dividend announced in January 2003, at $0.08 a share, followed in November 2004 by a one-time special dividend of $3.00 a share.
• Satya Nadella became chief executive in February 2014 and chairman in June 2021.
• The Nokia phone business, acquired in April 2014, led to a $7.5 billion write-down plus $2.5 billion of restructuring in fiscal 2015.
• LinkedIn ($27.0 billion, December 2016), GitHub ($7.5 billion, October 2018), Nuance ($18.8 billion, March 2022) and Activision Blizzard ($75.4 billion, October 13, 2023 — its largest deal).
• Fiscal 2018 included a one-time $13.7 billion charge from the U.S. Tax Cuts and Jobs Act.

Both charges were one-time accounting events, identified as such in the 10-K of each year, and should be read that way on any long chart of Microsoft’s profit.

Who owns it, and who sold

Sixteen of the 38 managers this site tracks held Microsoft at the end of June 2026, down from 22 at the end of 2021. Chris Hohn and David Tepper sold out in the second quarter of 2026. The largest holder among the 38 is Cliff Asness’s AQR, with 11.47 million shares worth $4.26 billion at the June 30 price of $373.02. Israel Englander added the most in the quarter (+$538 million), and Bill Ackman raised his stake by 9.8%, to $2.32 billion. Between June 30 and October 1 the stock rose from $373.02 to $512.80, so those values are well below what the same shares are worth now.

In the twelve months to October 1, 2026, one insider bought shares: director John Stanton, $1.99 million in February 2026. Executives sold $64.2 million through pre-arranged 10b5-1 plans — $43.4 million by Satya Nadella and $20.8 million by chief financial officer Amy Hood — and $50.4 million without a plan, led by vice chair and president Brad Smith ($20.0 million) and Judson Althoff ($18.3 million).

The long run

$1,000 invested at the IPO price in 1986 would have been worth about $7.03 million at the Oct 1, 2026 close on price alone. Dividends kept in cash would add about $501,000; reinvested, the total would be about $11.56 million. A buyer at the first day’s close paid $28.00 rather than $21.00, and would have about 25% less. At $512.80, the stock traded at 28.6 times its earnings of the last twelve months, with a 0.71% dividend yield.

These figures describe the past and are not investment advice. The Microsoft page has the same data, updated daily.