Azure’s annual revenue surpasses $100 billion with Q4 growth re-accelerating to 43% year-over-year, signaling strong enterprise AI demand.
Microsoft reported Azure annual revenue exceeded $100 billion for the first time, with Q4 growth accelerating to 43% year-over-year. The company guided Q1 FY27 Azure growth even higher, to 45% in constant currency, indicating sustained momentum in cloud and AI services.
Fiscal Q4 2026 revenue reached $90.01 billion, up 17.75% year-over-year, while non-GAAP diluted EPS of $4.74 beat estimates by 11.81%. Intelligent Cloud revenue rose 32% to $39.31 billion, and Microsoft Cloud revenue grew 27% to $59.3 billion. Commercial remaining performance obligations (RPO) surged 84% to $678 billion, reflecting strong enterprise AI adoption.
The company’s FY26 capex jumped 110% to $116 billion, though free cash flow declined 6%. Paid Copilot seats reached 30 million, demonstrating early monetization of AI investments.