Microsoft disclosed its financial results for the fiscal 2026 fourth quarter, revealing a $3.2 billion gain from its investment in Anthropic. This gain increased diluted earnings per share (EPS) by 33 cents, bringing the quarter’s EPS to $4.81. The company had invested $5 billion in Anthropic in November 2025 as part of a circular agreement that also included a $30 billion Azure services purchase commitment from the AI lab. Microsoft does not typically update the value of its Anthropic investment quarterly, but it does provide regular updates on its OpenAI investment.
Microsoft’s OpenAI investment performed less favorably in the quarter, with a $600 million write-down that reduced diluted EPS by about 7 cents. Microsoft owns 27% of OpenAI and receives revenue-share payments, though it does not disclose the exact amount. Despite the $600 million decline, the write-down was considered a minor adjustment given Microsoft’s overall strong financial performance. The company reported $90 billion in revenue and $35.8 billion in net income for the quarter, with total annual revenue reaching $331.8 billion and net income of $133.7 billion.
Microsoft’s OpenAI investment showed better results when viewed on a full-year basis, generating a $5 billion gain and adding $0.67 to EPS. The company reported $17.95 EPS for the fiscal year. Notably, Microsoft’s one-quarter gain from Anthropic was nearly as significant as its full-year gain from OpenAI, a detail the company chose to highlight.
Source: techcrunch
