Microsoft's AI Bet Pays Off As Azure Hits $100B Amid Xbox Slump
Microsoft has released its fourth-quarter and full-year fiscal 2026 earnings report, and it showcases better-than-expected financial performance driven heavily by explosive enterprise AI demand (what else is new?). While overall company revenue climbed to $90 billion for a modest 18% year-over-year gain, the $100 billion in full-year revenue for Azure tells the real story.
"We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results," said Satya Nadella, chairman and chief executive officer of Microsoft. "This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation."
Azure revenue crossing the $100 billion threshold is a clear signal of strong and continued AI growth, fueled by sustained enterprise AI adoption. It also helped drive a strong finish on the year for...
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