Microsoft FY26 Annual Report: Record Profits, a $678 Billion Backlog, and the Cap Ex Question

Podcast: Exponential Learning · The Team

Opublikowano: 2026-10-22

Microsoft's fiscal 2026 annual report, summarized: revenue $331.8B (+18%), operating income $155.2B (+21%), Azure past $100B (+41%), Microsoft 365 Copilot past 30 million paid seats — and commercial remaining performance obligation up 84% to $678B, more than two years of revenue already contracted. Set against that: $115.9B of cap ex, Microsoft Cloud gross margin down to 66%, free cash flow down despite record operating cash flow, and a stock that fell roughly 24% during the year. We walk Nadella's shareholder letter (the frontier ecosystem and the cost-to-outcome frontier), the segment results, the OpenAI earnings asterisk, capital return, and what the report actually changes for investors: backlog conversion and returns on de...