Microsoft revenue hits $90 billion as Azure crosses $100 billion milestone despite record AI spending
20 Sources
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Microsoft's cloud brings rain of revenue
Microsoft on Wednesday reported $90 billion in revenue for the quarter ended June 30, an increase of 18 percent, lifting its stock more than 7 percent in after hours trading. The cash intake was more than Wall Street analysts anticipated, and showed up where it counted - the company's cloud
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Microsoft's cloud business boosts sales as AI investment climbs to $41bn
Microsoft's sales rose 18 per cent to $90bn in the three months to the end of June, ahead of analysts' expectations of $87.7bn, as the tech group's cloud business continued to accelerate. Sales in the tech group's intelligent cloud segment, which houses its Azure platform, rose 32 per cent to
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Microsoft beats Wall Street expectations with $90B in revenue
Microsoft posted strong results for its quarterly earnings on Wednesday, beating expectations and showing strong growth in its cloud computing platform and a boost in paid AI users. The Redmond, Washington, company earned $90 billion, or $4.81 per share, in the April-June quarter. That is up 18%
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Microsoft Azure tops $100B in annual revenue as record AI spending cuts into cash flow
Microsoft's Azure cloud business grew 43% last quarter, blowing past the company's own forecast and surpassing $100 billion in annual revenue for the first time, providing fresh evidence of the potential for artificial intelligence to fuel new growth for the tech giant. The company's results for
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Microsoft Q4: Azure tops $100bn, AI bet mostly pays off
Microsoft's cloud growth reaccelerated in the fourth quarter, with Azure up 43% and full-year Azure revenue passing $100bn for the first time. The backlog jumped to $678bn, and demand is broadening beyond AI labs. But capital spending hit $35.8bn in the quarter alone, and a one-off Anthropic gain
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Customers encouraged to take a multi-model approach to AI as Microsoft's infrastructure CapEx soars 70%
A strong end to its current fiscal year kept Wall Street happy with Microsoft, despite a 70% year-on-year increase in CapEx to fund AI infrastructure expansion. Total Q4 revenue of $89.5 billion dollars was up 17% year-on-year, while net income rose 24% at $27.2 billion. Revenue from Microsoft
[7]
Microsoft Beats Wall Street Expectations With $90B in Revenue
Microsoft posted strong results for its quarterly earnings on Wednesday, beating expectations and showing strong growth in its cloud computing platform and a boost in paid AI users. The Redmond, Washington, company earned $90 billion, or $4.81 per share, in the April-June quarter. That is up 18%
[8]
Microsoft's AI-Fuelled Rally: 5 Reasons Wall Street is bullish again
Microsoft's latest earnings reignited Wall Street's AI optimism as Azure outperformed, cloud demand accelerated and a record order backlog strengthened confidence that the company's multibillion-dollar AI investments are beginning to pay off. Microsoft becomes Wall Street's most valuable
[9]
Microsoft Stock Surge: Analyst Highlights Expanding Cloud Footprint and OpenAI Momentum - Microsoft (NASD
The latest earnings snapshot showed a 14th straight "double beat," with quarterly revenue of $90.01 billion (+18%) and EPS of $4.74 topping consensus. The overall cloud revenue rose 27% to $59.3 billion. Intelligent Cloud revenue climbed 32% to $39.3 billion, and Azure and other cloud services
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Microsoft CEO Nadella Touts AI Model Choice, Resilience
'If a firm is a learning machine, they need their own learning machine. Models are an input, not some extraction of the knowledge of the enterprise,' Microsoft CEO Satya Nadella said on the company's fourth fiscal quarter earnings call. Microsoft Chairman and CEO Satya Nadella touted his company's
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Microsoft's AI Bet Pays Off: Key Takeaways From Its Blockbuster Quarter - Microsoft delivers a blockbuster quarter
Microsoft's AI Bet Pays Off: Key Takeaways From Its Blockbuster Quarter 1/8 Microsoft delivers a blockbuster quarter Microsoft stunned Wall Street with a stronger-than-expected earnings report, sending its shares soaring nearly 16% in their biggest single-day gain since 2008. The rally added
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MSFT Says the Next Phase of AI Is 'Per Seat Plus Consumption' as Copilot Usage Grows - Microsoft (NASDAQ:
Usage-Based Pricing Broadens AI Monetization During its fourth-quarter earnings call, CEO Satya Nadella said Microsoft is evolving its commercial model beyond per seat to per seat plus consumption. "We are also evolving our business model beyond per seat to per seat plus consumption, further
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Microsoft shares surge 16% as AI cloud bet starts showing up in numbers
Microsoft shares surged 16% after stronger-than-expected guidance, robust Azure cloud growth and rising Microsoft 365 Copilot adoption eased concerns over AI spending. The company also forecast healthy cash generation, reinforcing investor confidence in its long-term artificial intelligence
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Microsoft earnings analysis: questions answered and next catalysts By Investing.com
Investing.com -- Microsoft (MSFT) just delivered a FY2026 Q4 beat -- $4.74 EPS (+11.79% surprise) on $90.01B revenue (+$2.4B above estimates) -- and the market rewarded it with a +16.96% surge to $456.76 today, erasing months of frustration where MSFT fell on beats three of the prior four quarters.
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Explained: Why Microsoft shares rallied 9% in extended trading after Q4 earnings despite AI worries
Microsoft shares surged nearly 9% in extended trading after the software giant reported stronger-than-expected Q4 earnings and Azure cloud growth. Robust AI-driven demand, upbeat guidance and lower-than-expected capital expenditure expectations reassured investors that Microsoft's heavy investments
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Microsoft's AI bet pays off as Azure, Cloud growth beat expectations - Microsoft Delivers Strong Quarter
Microsoft's AI bet pays off as Azure, Cloud growth beat expectations 1/5 Microsoft Delivers Strong Quarter Microsoft topped Wall Street expectations for its fiscal fourth quarter, driven by robust Azure cloud growth and accelerating AI adoption. Revenue, earnings and guidance all exceeded
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Microsoft Beats Cloud Expectations on Azure and the AI Boom
Azure's Q4 revenue rose 43%, versus a 39.98% consensus, allowing Microsoft to top market expectations. The stock rose about 2% following the results. CEO Satya Nadella said Azure's annual revenue surpassed $100bn for the first time, while Microsoft 365 Copilot now has more than 30 million paid
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Microsoft tops quarterly cloud growth estimates, easing spending concerns
July 29 (Reuters) - Microsoft topped Wall Street estimates for quarterly cloud revenue growth on Wednesday, a sign its massive spending on AI infrastructure was paying off as capacity constraints ease and more businesses adopt the technology. Revenue at the company's Azure cloud-computing business
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Microsoft AI cash flow: Microsoft says cash will keep flowing from AI, shares rise
The company also forecast sales and cloud growth that beat expectations for its current fiscal first quarter, after it also topped Wall Street estimates for quarterly cloud revenue growth in its fiscal fourth quarter ended June 30. Microsoft on Wednesday said it expects to keep generating cash
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Microsoft earnings surprise: Azure outperforms, Copilot adoption hits new record
Satya Nadella said Microsoft's in-house AI models and chips have improved efficiency by up to 40%, with cloud backlog reaching $678 billion. Microsoft has reported stronger-than-expected quarter results thanks to its cloud and artificial intelligence businesses. The company has also issued an
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Microsoft reported $90 billion in quarterly revenue, beating analyst expectations as its cloud business accelerated. Azure revenue surpassed $100 billion annually for the first time while growing 43% year-over-year. But the AI bet came at a steep price, with capital expenditure hitting a record $41 billion in the quarter, raising questions about long-term returns on massive AI infrastructure investments.
Microsoft Revenue Beats Forecasts as Cloud Business Accelerates
Microsoft revenue reached $90 billion for the quarter ended June 30, an 18% increase that exceeded Wall Street expectations of $87.7 billion
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. The results lifted Microsoft's stock more than 3% in after-hours trading, a notable shift from recent patterns where strong earnings were met with selloffs that pushed shares near a one-year low4
. Net income climbed 31% year-over-year to $35.8 billion, with diluted earnings per share reaching $4.81, well above the $4.24 analysts anticipated3
. For the full fiscal year ending June 30, 2026, the company brought in $331.8 billion in revenue, up 18%, with operating income at $155.2 billion and net income at $133.7 billion1
.Azure Revenue Surpasses $100 Billion Milestone
Microsoft's cloud business delivered the quarter's standout performance. Microsoft Cloud revenue reached $59.3 billion, up 27% year-over-year, while Azure and other cloud services revenue grew 43%, ahead of the 40% expected and accelerating from 40% the previous quarter
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. The intelligent cloud segment, which houses the Azure platform, posted sales of $39.3 billion, up 32%2
. CEO Satya Nadella highlighted that Azure revenue surpassed $100 billion for the first time on an annual basis, calling it a reflection of "the confidence customers are placing in us to power their AI transformation"3
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Source: The Register
The acceleration is particularly significant given that Microsoft has been capacity-constrained, rationing chips between Azure customers, its own research, and Copilot services
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.Microsoft 365 Copilot Reaches 30 Million Paid Seats
Customer adoption of AI tools showed measurable progress. Microsoft 365 Copilot reached over 30 million paid seats, representing a 50% increase from the previous quarter
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. However, this represents less than 7% of the roughly 450 million commercial Microsoft 365 seats, a gap that has drawn investor skepticism throughout the year4
. The relatively modest penetration rate comes despite Microsoft's imposition of usage-based billing on top of seat-based charges1
. The commercial backlog—revenue booked but not yet recognized—jumped 84% year-over-year to $678 billion, with CFO Amy Hood noting that customer demand for cloud services exceeds available capacity1
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Source: ET
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Record AI Spending Raises Questions About Returns
The AI bet came at a substantial cost. Capital expenditure hit a record $41 billion in the quarter, up 70% from a year earlier and about 28% more than the $31.9 billion reported last quarter
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. Microsoft spent $35.8 billion on property and equipment during fiscal Q4 alone, more than double the $17.08 billion in the year-ago quarter, bringing full-year capital expenditures to $115.95 billion—up nearly 80% from $64.55 billion in fiscal 20251
. The AI-driven investment surge cut into operating cash flow, which rose 30% to $55.44 billion, while free cash flow sank 23% even as operating profits jumped 18%1
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. CFO Amy Hood revealed that about two-thirds of the company's capex took the form of short-lived assets like CPUs and GPUs, with finance leases accounting for about $5.6 billion1
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Source: Benzinga
AI Infrastructure Investments Face Scrutiny
Microsoft's profit jump requires context. The 31% net income growth included a one-off $3.2 billion gain on the company's stake in Anthropic
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. Excluding this and other one-time items, profit growth was closer to 22%5
. Microsoft shares are down about 17-19% this year as investors fret over the capital spending arms race and the durability of its software franchise in the AI era2
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. Fitch Ratings warned that the possibility of an AI market correction has emerged as a major credit risk, noting that "the combination of revenue uncertainty and the extent to which capital markets and economies have become intertwined with AI have created a vulnerability for credit in the event of a re-evaluation of long-run returns potential"1
. Danielle Criste, Microsoft's director of investor relations, emphasized that the company remains "very confident in the long-term return on these investments, given these strong demand signals, the increasing product usage we've seen and the efficiencies that we're driving across the platform"3
. The verdict on the AI spending remains mixed: demand is clearly real and broadening beyond AI labs, but the build-out costs keep rising, and investors are watching closely to see whether revenue growth can sustain the pace of investment5
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