Microsoft introduced a voluntary exit offer for eligible employees as revenue grew 67% over four fiscal years and year-end headcount remained near its 2022 level.
Revenue reached $331.839 billion in the year ended June 30, up 18% from fiscal 2025. Operating income rose 21% to $155.2 billion. Fiscal 2022 revenue was $198.270 billion, making the increase about 67% over the four-year span.
Microsoft Cloud revenue increased 27% to $214.4 billion. The company’s total combines Azure and other cloud services with Microsoft 365 Commercial cloud, commercial LinkedIn and Dynamics 365. Azure revenue grew 41%, while Microsoft 365 Copilot had more than 30 million paid seats.
Microsoft counted about 223,000 full-time employees as of June 30, down 5,000, or about 2.2%, from a year earlier. The year-end count was 221,000 in 2022. Product research and development staff totaled 77,000, compared with 80,000 in 2025 and 81,000 in 2024. The figures do not explain the reason for the latest annual decline.
Microsoft reported $41 billion in capital expenditures for the quarter ended June 30 and said Azure customer demand exceeded available capacity. For that quarter, Microsoft Cloud’s gross-margin percentage was 65%, down from a year earlier. Microsoft attributed the decline to a greater Azure share of sales and continued costs for AI infrastructure and product usage; efficiency gains partly offset those factors.
On Monday, Microsoft announced a time-limited exit offer for eligible employees in participating teams in the United States, Canada, India and the United Kingdom. It applies to employees at level 70 and below and includes financial support and career-planning resources. Microsoft did not disclose how many employees are eligible or how many might accept. Chief People Officer Amy Coleman said each business’s priorities, customer commitments and workforce needs will shape participation.
Microsoft said more than 30% of eligible employees joined an earlier voluntary retirement program in 2026, but it did not disclose the size of that group. The company’s next results release, for fiscal 2027’s first quarter, is scheduled for Wednesday, Oct. 28.
