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Microsoft posts 18% revenue growth to $90 billion as Azure tops $100 billion

Microsoft posts 18% revenue growth to $90 billion as Azure tops $100 billion

Azure growth accelerated to 43% and Copilot paid subscriptions passed 30 million as Microsoft defended heavy AI spending with a stronger cloud outlook and rising enterprise adoption.

Fact Check
Microsoft's official FY26 Q4 press release directly confirms every element of the claim: revenue of $90.0B with 18% YoY growth, driven by cloud and AI, with Azure accelerating to 43% growth and topping $100B annually, and Microsoft 365 Copilot paid seats exceeding 30M. CNBC (news_primary) confirms the revenue beat versus the $87.62B consensus, and both CNBC and Cryptobriefing confirm capex (~$41B total including leases) came in below the ~$42.4B market forecast. The claim's specific figures and characterization ('below market forecasts' capex, accelerating Azure growth, climbing Copilot seats) match the primary source precisely.
    Reference: 123
Summary

Microsoft reported fiscal 2026 fourth-quarter revenue of $90.07 billion, up 18% year over year, and net profit of $35.766 billion, up 31%, as Azure growth accelerated to 43% and full-year Azure revenue passed $100 billion for the first time. The company said paid subscriptions for Microsoft 365 Copilot exceeded 30 million, while CFO Amy Hood forecast Azure growth of about 45% for the fiscal first quarter and said demand continues to outpace available compute capacity. Investors have been watching whether Microsoft's large AI outlays are translating into revenue growth, even as quarterly capital expenditures climbed 70% to $41 billion and full-year capex reached $145.3 billion. Microsoft said its calendar 2026 investment outlook remains about $175 billion following an accounting change that extended data center useful life to 25 years from 15. The quarter also included a $3.2 billion valuation gain on Anthropic, a $480 million net loss tied to OpenAI after its conversion to a for-profit entity, and pressure on cash generation, with free cash flow down 23% year over year to $19.639 billion and cloud gross margin slipping to 65% from 68%.

Terms & Concepts
  • Azure: Microsoft's cloud computing platform, a major driver of the company's infrastructure and AI-related revenue growth.
  • capital expenditures: Corporate spending on long-term assets such as data centers, chips and other computing infrastructure.
  • free cash flow: Cash generated after operating and investment outlays, often used to assess how efficiently a company turns growth into cash.