Microsoft reported 30 million paid Copilot seats and 43% Azure growth, easing investor concerns over AI investment returns.
Microsoft’s fourth-quarter results exceeded expectations, driven by a surge in AI-related revenue. The company now has over 30 million paid Microsoft Copilot 365 seats, signaling traction in its AI software adoption. Azure revenue grew 43% last quarter, with further acceleration expected through the first half of fiscal 2027.
Investor skepticism had weighed on Microsoft earlier in the year, with doubts over AI monetization. The latest figures contrast with prior concerns, though Bloomberg noted much of the AI growth stems from OpenAI, raising concentration risks. Despite this, the earnings report restored confidence in Microsoft’s AI strategy.
Microsoft’s stock rose 25% since the earnings release, outperforming peers like Amazon, Google, Meta, and Oracle. While the stock had underperformed the S&P 500 over the past year, it turned positive year-to-date following the results.