Microsoft's Azure AI revenue tops $100bn for the fiscal year

Microsoft reported fiscal 2026 fourth-quarter and full-year results showing Azure and other cloud services revenue passing $100 billion for the fiscal year for the first time, with quarterly Azure growth of 43%. Microsoft Cloud revenue reached $59.3 billion for the quarter, up 27% year on year. Total company revenue for the quarter was $90.0 billion, up 18%, and full-year revenue was $331.8 billion.

Chief executive Satya Nadella said the company was “advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,” and cited Microsoft 365 Copilot passing 30 million paid seats. Capital expenditure remained heavy: $35.8 billion in the quarter and $115.9 billion for the year, spending that underpins the compute capacity Azure sells into AI workloads. Net income grew 31% for both the quarter and the full year, to $35.8 billion and $133.7 billion respectively.

The results landed in the same reporting week as Alphabet’s and Meta’s, and together they were the clearest data point available at the time on whether the capital spent building AI infrastructure was converting into revenue rather than remaining a bet on future demand. Microsoft’s numbers argued for the optimistic reading; Meta’s reported the same week that free cash flow had fallen sharply on its own AI capital spending, illustrating that the same investment cycle was producing divergent near-term financial pictures across the largest spenders.