Vendor Updates & Earnings Tracker
Track quarterly earnings, licensing changes, pricing updates, and audit risk indicators from major software vendors. Understand how financial performance impacts compliance enforcement.
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Microsoft
Audit Risk Assessment
FY2026 closed with another beat ($90.0B, Azure +43%), so enforcement pressure stays low. The exposure is contractual: the July 1, 2026 M365 increases (9-20%) are now in effect, EA/CSP parity has reset large-buyer discounting, and Copilot/agent entitlements plus consumption charges outside per-seat pricing create new true-up and budget risk at renewal.
BEAT: Revenue $90.0B vs $87.6B expected; non-GAAP EPS $4.74 vs $4.24 expected. Azure revenue grew 43%, topping the ~40% analyst estimate. Operating income $40.6B (+18%). Shares rose more than 8% after hours. FY2027 capex guided to ~$50B for Q1 after a data-center lease accounting change. Financial strength keeps enforcement low—renewal and Copilot/agent licensing complexity is the real exposure.
Recent Misses (Watch Indicators)
Contract Versions & Agreements
Primary agreement for commercial customers purchasing Microsoft cloud services and software.
Effective: October 1, 2024Volume licensing program for organizations with 500+ users/devices.
Effective: OngoingTransactional licensing for on-premises software and cloud services without organization-wide commitment.
Effective: OngoingEnrollment option under EA for server and cloud products.
Effective: OngoingUse rights and restrictions for all Microsoft commercial products and services.
Effective: December 1, 2024Earnings History (5 Years)
| Quarter | Date | Expected | Actual | Result |
|---|---|---|---|---|
| Q4 FY2026 | Jul 29, 2026 | $87.6B | $90.0B | |
| Q3 FY2026 | Apr 29, 2026 | $80.8B | $82.9B | |
| Q2 FY2026 | Jan 28, 2026 | $78.0B | $81.3B | |
| Q1 FY2026 | Oct 29, 2025 | $74.0B | $77.7B | |
| Q4 FY2025 | Jul 30, 2025 | $72.0B | $73.2B | |
| Q3 FY2025 | Apr 30, 2025 | $68.4B | $70.1B | |
| Q2 FY2025 | Jan 29, 2025 | $68.8B | $69.6B | |
| Q1 FY2025 | Oct 30, 2024 | $64.5B | $65.6B | |
| Q4 FY2024 | Jul 30, 2024 | $64.2B | $64.7B | |
| Q3 FY2024 | Apr 25, 2024 | $60.8B | $61.9B | |
| Q2 FY2024 | Jan 30, 2024 | $61.0B | $62.0B | |
| Q1 FY2024 | Oct 24, 2023 | $54.5B | $56.5B | |
| Q4 FY2023 | Jul 25, 2023 | $55.5B | $56.2B | |
| Q3 FY2023 | Apr 25, 2023 | $51.0B | $52.9B | |
| Q2 FY2023 | Jan 24, 2023 | $53.0B | $52.7B | |
| Q1 FY2023 | Oct 25, 2022 | $49.6B | $50.1B | |
| Q4 FY2022 | Jul 26, 2022 | $52.4B | $51.9B | |
| Q3 FY2022 | Apr 26, 2022 | $49.0B | $49.4B | |
| Q2 FY2022 | Jan 25, 2022 | $50.7B | $51.7B | |
| Q1 FY2022 | Oct 26, 2021 | $44.0B | $45.3B | |
| Q4 FY2021 | Jul 27, 2021 | $44.2B | $46.2B | |
| Q3 FY2021 | Apr 27, 2021 | $41.0B | $41.7B | |
| Q2 FY2021 | Jan 26, 2021 | $40.2B | $43.1B | |
| Q1 FY2021 | Oct 27, 2020 | $35.8B | $37.2B | |
| Q4 FY2020 | Jul 22, 2020 | $36.5B | $38.0B |
Latest Updates
Q4 FY2026: $90.0B Revenue Beat, Azure Up 43%
Microsoft closed FY2026 with $90.0B revenue (+18%) vs $87.6B expected and non-GAAP EPS of $4.74 vs $4.24 expected. Azure grew 43%, ahead of the ~40% consensus, and operating income reached $40.6B. Results included a $3.2B gain on the Anthropic investment. Shares rose more than 8% after hours. With targets exceeded, expect continued low enforcement pressure—your exposure is renewal pricing (July 1 increases now in effect) and Copilot/agent entitlement sprawl.
Read full update on Q4 FY2026: $90.0B Revenue Beat, Azure Up 43%Q3 FY2026: $82.9B Revenue Beat, Azure Re-Accelerates
Microsoft beat Q3 FY2026 with $82.9B revenue (+18% YoY) vs $80.8B expected. Azure growth re-accelerated. Paid Copilot seats surpassed 20M (4.4% of commercial base). Capex remained elevated as AI infrastructure buildout continues. Strong beat reduces near-term audit pressure, but Copilot licensing complexity is the new compliance frontier.
Read full update on Q3 FY2026: $82.9B Revenue Beat, Azure Re-AcceleratesMicrosoft 365 E7 "Frontier Suite" Launches May 1 at $99/User
Microsoft announced M365 E7, a new premium tier bundling E5, Copilot, Entra Suite, and Agent 365 at $99/user/month. Positioned as the AI-first enterprise bundle. Consumption costs for building and running AI agents sit outside the per-seat price—watch for hidden cost escalation.
Read full update on Microsoft 365 E7 "Frontier Suite" Launches May 1 at $99/UserQ2 FY2026: $81.3B Revenue Beat, But Stock Drops 10%
Microsoft beat estimates ($81.3B vs $78B expected) but stock dropped 10%. Azure growth moderated. $37.5B quarterly capex raised investor concerns. Copilot adoption at only 15M paid seats (3.3% of commercial base). Operating margin guidance came in light.
Read full update on Q2 FY2026: $81.3B Revenue Beat, But Stock Drops 10%July 2026 M365 Price Increases: 9-20% Across Core SKUs
Microsoft confirmed July 1, 2026 price increases: Business Basic +17%, Business Standard +16%, Business Premium +14%, E1 +20%, E3 +13%, M365 E3 +11%, E5 +9%. Largest across-the-board increase in M365 history. Lock in current rates before July.
Read full update on July 2026 M365 Price Increases: 9-20% Across Core SKUsEnterprise Agreement Price Parity with CSP
Microsoft introduced price parity between Enterprise Agreement (EA) and Cloud Solution Provider (CSP) programs. Automatic tiered discounts for large enterprises replaced with a tailored approach. High-volume EA buyers may see cost increases.
Read full update on Enterprise Agreement Price Parity with CSPSecurity Copilot Included in M365 E5
Microsoft Security Copilot with 70+ Microsoft and partner-built agents now included in Microsoft 365 E5 subscriptions. Provides AI-powered security automation for Defender, Entra, Intune, and Purview.
Read full update on Security Copilot Included in M365 E5Teams Re-Bundled with M365 Suites
Following resolution of EU regulatory concerns, Microsoft Teams can again be bundled with Business Premium, E3, and E5 subscriptions, reducing complexity and separate licensing costs.
Read full update on Teams Re-Bundled with M365 Suites Read our analysis: Recent Microsoft Changes: 365, Teams & NCE PricingNCE Annual Subscriptions: 5% Price Increase
New Commerce Experience (NCE) annual-commit subscriptions renewing in early 2026 face a 5% price increase. Organizations should review renewal timing and consider locking in rates before increases take effect.
Read full update on NCE Annual Subscriptions: 5% Price IncreaseKey Dates
Upcoming
October 13, 2026
Office LTSC 2021 End of Support
January 12, 2027
Windows Server 2016 End of Extended Support
October 13, 2027
SQL Server 2017 End of Extended Support
October 2026
Q1 FY2027 Earnings (Est.)
Recent Past
July 29, 2026
Q4 FY2026 Earnings (BEAT: $90.0B, Azure +43%)
July 1, 2026
Major M365 Price Increase Took Effect (9-20%)
June 30, 2026
FY2026 Ended
May 1, 2026
M365 E7 "Frontier Suite" Launched ($99/user)
April 29, 2026
Q3 FY2026 Earnings (BEAT: $82.9B)
January 28, 2026
Q2 FY2026 Earnings (BEAT, stock -10%)
January 2026
NCE 5% Price Increase Begins
November 1, 2025
EA/CSP Price Parity Effective
October 29, 2025
Q1 FY2026 Earnings (BEAT)
July 30, 2025
Q4 FY2025 Earnings (BEAT)
5-Year Summary
23
Beats/Meets
2
Misses
Past Changes That Still Matter
Historical Microsoft licensing, pricing and support changes that continue to shape compliance and renewal risk today.
| Date | Type | Change | Why it still matters |
|---|---|---|---|
| January 14, 2020 | Support | Windows Server 2008/2008 R2 reached end of extended support. | Customers remaining on these releases needed Azure-hosted or paid ESU coverage, where available, or an upgrade. |
| January 14, 2020 | Support | Windows 7 reached end of extended support. | Legacy Windows 7 devices may still create security exposure and require evidence of historical ESU coverage. |
| October 13, 2020 | Support | Office 2010 reached end of support. | Perpetual Office installations are frequently missed during Microsoft 365 migrations and may remain installed on shared, virtual or specialist devices. |
| March 1, 2022 | Pricing | Microsoft increased commercial Microsoft 365 and Office 365 pricing, including O365 E1/E3/E5 and M365 E3.Microsoft pricing announcementRelated analysis: Recent Microsoft Changes: 365, Teams & NCE Pricing | This made license optimization, suite selection and removal of unused subscriptions more financially meaningful. |
| 2022 | Commercial model | Microsoft's New Commerce Experience became the standard purchasing model for many CSP subscriptions. Monthly commitments carried a premium while annual terms imposed stricter cancellation and reduction rules. | Customers gained less flexibility to reduce licenses midterm, making renewal-date management and accurate seat forecasting essential. |
| July 12, 2022 | Support | SQL Server 2012 reached end of extended support. | Remaining deployments require ESUs, qualifying Azure coverage or migration. SQL discovery is important because forgotten instances can still create licensing and security exposure. |
Windows Server 2008/2008 R2 reached end of extended support.
Why it still matters: Customers remaining on these releases needed Azure-hosted or paid ESU coverage, where available, or an upgrade.
Windows 7 reached end of extended support.
Why it still matters: Legacy Windows 7 devices may still create security exposure and require evidence of historical ESU coverage.
Office 2010 reached end of support.
Why it still matters: Perpetual Office installations are frequently missed during Microsoft 365 migrations and may remain installed on shared, virtual or specialist devices.
Microsoft increased commercial Microsoft 365 and Office 365 pricing, including O365 E1/E3/E5 and M365 E3.Microsoft pricing announcementRelated analysis: Recent Microsoft Changes: 365, Teams & NCE Pricing
Why it still matters: This made license optimization, suite selection and removal of unused subscriptions more financially meaningful.
Microsoft's New Commerce Experience became the standard purchasing model for many CSP subscriptions. Monthly commitments carried a premium while annual terms imposed stricter cancellation and reduction rules.
Why it still matters: Customers gained less flexibility to reduce licenses midterm, making renewal-date management and accurate seat forecasting essential.
SQL Server 2012 reached end of extended support.
Why it still matters: Remaining deployments require ESUs, qualifying Azure coverage or migration. SQL discovery is important because forgotten instances can still create licensing and security exposure.
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