Microsoft Reports 60% Increase in Q2 FY26 Net Income to $38.5bn

Microsoft Q2 FY26 Earnings: $81B Revenue, AI Momentum, and a 150% Jump in Water Use by 2030

Microsoft’s Q2 FY26 earnings show a company growing fast while facing new sustainability pressures. Revenue surged on strong AI and cloud demand, carbon removal commitments doubled, and data centers expanded. At the same time, rising water use highlights the environmental costs of AI. Together, the results show how Microsoft is trying to balance financial growth, climate action, and resource management as its AI-driven business scales. Big Numbe…

Microsoft reports 60% increase in Q2 FY26 net income to $38.5bn

Microsoft has reported a 60% increase in net income for the second quarter of fiscal year 2026 (Q2 FY26), reaching $38.5bn on a GAAP basis, compared to $24.1bn in the same quarter last year. On a non-GAAP basis, net income for the quarter ending 31 December 2025, was $30.9bn, reflecting a 23% increase from $25bn. The reported quarter’s revenue totalled $81.3bn, representing a 17% year-over-year (YoY) growth from $69.6bn, or 15% when adjusted for…