Microsoft posts 18% revenue growth as Azure and AI drive earnings

Microsoft reported fiscal‑2026 fourth‑quarter revenue of $90.01 billion, an 18% year‑over‑year increase. The Intelligent Cloud segment generated $39.31 billion, up 31.6%, with Azure revenue rising 43% and surpassing $100 billion in annual revenue. The company highlighted that Microsoft 365 Copilot now has more than 30 million paid users. It forecast positive free cash flow for fiscal 2027 and announced a $175 billion capital‑expenditure plan for 2026, emphasizing heavy investment in compute capacity and AI infrastructure. The earnings release lifted the stock about 16% and reinforced Microsoft’s AI narrative. The firm also expanded its partnership with ArcelorMittal, making Azure the primary cloud platform for the steelmaker. In contrast, Oracle posted strong cloud order growth but recorded negative free cash flow, underscoring Microsoft’s stronger cash‑flow position while both firms pursue aggressive AI spending.