Microsoft’s Q4 revenue hit $90.01 billion, beating estimates as Azure growth surged 43% and Copilot adoption accelerated.
Microsoft shares surged nearly 17% Thursday after reporting fourth-quarter revenue of $90.01 billion and earnings per share of $4.74, both exceeding expectations. Azure revenue climbed 43% year-over-year, outpacing consensus estimates of 40%, while paid Copilot seats surpassed 30 million, more than doubling sequentially.
The company guided first-quarter Azure growth to about 45%, above the Street’s 41% forecast. Remaining performance obligations rose $51 billion to $678 billion, with analysts noting broadening AI demand beyond frontier-model customers. About 30% of remaining performance obligations are expected to convert to revenue over the next year.
Analysts highlighted the results as validation of Microsoft’s AI strategy, citing accelerating Microsoft 365 growth and strong Copilot adoption. The stock’s gain marks its best single-day performance in nearly 18 years.