Microsoft Azure revenue exceeds $100 billion amid 43% growth

Microsoft reported significant growth in its cloud and AI sectors for the fiscal fourth quarter ending June 30, 2026. Azure and other cloud services grew 43% year-over-year, and annual Azure revenue exceeded $100 billion for the first time.

Total company revenue for the quarter reached $90 billion, an 18% increase, while Microsoft Cloud revenue rose 27% to $59.3 billion. Net income saw a 31% jump to $35.8 billion. To support this demand, capital expenditures for the quarter reached approximately $41 billion, with total property and equipment additions for the full fiscal year rising 80% to $115.9 billion.

On the product side, Microsoft 365 Copilot surpassed 30 million paid seats. The company is seeing increased integration of its AI stack into sector-specific workflows through various enterprise plugins. While cloud gross margins fell to 65% from 68% in the previous quarter due to heavy infrastructure spending, commercial remaining performance obligations rose 84% year-over-year to $678 billion.