Microsoft (MSFT) Q2 FY26 earnings call

Earnings call· Dec 2025 (Q2 FY26)· Information Technology· Jan 28, 2026

Source: earnings call transcript

Microsoft delivered a strong quarter with record cloud revenue and accelerating AI adoption across its product suite, despite significant infrastructure investments. The company is strategically allocating capacity to maximize long-term value across its first-party AI applications and Azure, while navigating a dynamic market with strong demand for AI services. Management remains focused on building a comprehensive AI stack and leveraging its platform to drive future growth and profitability.

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MSFT operating KPIs by quarter

MSFT operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2025 Q3 FY25	Sep 2025 Q1 FY26	This call Dec 2025 Q2 FY26	Mar 2026 Q3 FY26	Jun 2026 Q4 FY26	Change vs prior quarter
Customers Microsoft Fabric	21K+ Microsoft Fabric has more than 21,000 paid customers, up 80% year-over-year. Source: earnings call transcript	28K We now have 28,000 paid Fabric customers. Source: earnings call transcript	31K+ 2 years since it became broadly available, Fabric's annual revenue run rate is now over $2 billion with over 31,000 customers, and it continues to be the fastest-growing analytics platform on the market with revenue up 60% year-over-year. Source: earnings call transcript	35K We now have 35,000 paid Fabric customers, up 60% year-over-year. Source: earnings call transcript	40K+ When it comes to analytics, we now have over 40,000 paid Fabric customers, up more than 60% year-over-year, and over 17,000 customers now use Foundry and Fabric, up 60% year-over-year as enterprises connect agents to real-time operational, analytical, and unstructured data in Fabric. Source: earnings call transcript	—
Users GitHub Copilot	15M+ All-up, we now have over 15 million GitHub Copilot users, up over 4x year-over-year. Source: earnings call transcript	26M+ When it comes to coding, GitHub Copilot is the most popular AI pair programmer now with over 26 million users. Source: earnings call transcript	—	—	50M When it comes to developers, GitHub Copilot now has 50 million users. Source: earnings call transcript	—
Customers Security	1.4M All-up, we now have 1.4 million security customers, over 900,000, including EY Global, ManpowerGroup, TriNet, Regions Bank have 4 or more workloads, up 21% year-over-year. Source: earnings call transcript	—	1.6M In Security, we now have 1.6 million security customers, including over 1 million who use 4 or more of our workloads. Source: earnings call transcript	—	—	—
Monthly active users (MAU) Entra	900M+ And in identity, Entra now has more than 900 million monthly active users. Source: earnings call transcript	1B In security, our end-to-end stack is now informed by 100 trillion daily signals, 1 billion monthly active users of Entra, 16 billion Copilot interactions audited by Purview, up 72% quarter-over-quarter, 40,000 Sentinel customers, and we took share across all categories we serve in security. Source: earnings call transcript	—	—	—	—
Remaining performance obligation (RPO) Commercial	$315B Commercial remaining performance obligation increased to $315 billion, up 34% and 33% in constant currency. Source: earnings call transcript	$392B Commercial remaining performance obligation increased to $392 billion and was up 51% year-over-year. Source: earnings call transcript	$625B Commercial remaining performance obligation, which continues to be reported net of reserves increased to $625 billion, and was up 110% year-over-year with a weighted average duration of approximately 2.5 years. Source: earnings call transcript	$627B RPO increased to $627 billion and was up 99% year-over-year with a weighted average duration of approximately 2.5 years when including OpenAI. Source: earnings call transcript	$678B Commercial remaining performance obligation grew 84% to $678 billion. Source: earnings call transcript	+8.1%
Subscribers M365 Consumer	—	90M+ M365 consumer subscriptions grew 7% to over 90 million. Source: earnings call transcript	—	<95M And in Microsoft 365 consumer, we now have nearly 95 million subscribers and early signals show increasing satisfaction as we make Agent Mode the default. Source: earnings call transcript	—	—
Paid seats Microsoft 365 Copilot	—	—	15M We saw accelerating seat growth quarter-over-quarter and now have 15 million paid Microsoft 365 Copilot seats and multiples more enterprise chat users. Source: earnings call transcript	20M+ Quarter-over-quarter, we continue to see acceleration and now have over 20 million Microsoft 365 Copilot paid seats. Source: earnings call transcript	30M+ When it comes to knowledge work, we now have over 30 million paid Microsoft 365 Copilot seats, with net seat adds more than doubling quarter-over-quarter. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.