Microsoft Q4 Revenue Hits $90 Billion, Azure Up 43%

Microsoft reported robust quarterly earnings on July 29, 2026, demonstrating that its massive investments in artificial intelligence are accelerating growth in its core cloud business and delivering clear financial returns, a contrast that sent its shares soaring while those of rival Meta Platforms fell sharply. The company's fiscal fourth-quarter revenue reached $90 billion, an 18% increase from a year earlier, surpassing Wall Street expectations.

A key driver was the Azure cloud platform, where revenue grew 43% year-over-year, marking the division's fastest quarterly growth rate since early 2022. For the full fiscal year ending in June, Azure revenue surpassed $100 billion for the first time. Microsoft Cloud revenue, a broader segment, increased 27% to $59.3 billion for the quarter. The company's net income rose 31% to $35.8 billion, a figure that included a one-time $3.2 billion gain from its investment in AI lab Anthropic.

Chief Executive Officer Satya Nadella highlighted the milestone for Azure and noted that the company's flagship AI product, Microsoft 365 Copilot, now has over 30 million paid seats, up from 20 million in the prior quarter. He said the growth reflects...