Microsoft Q4 Revenue Hits $90.1B, Azure Crosses $100B
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- Microsoft reported Q4 FY2026 revenue up 18% YoY to $90.1B, beating the $87.62B estimate, with shares jumping 7%+ pre-market on the print.
- Azure surpassed $100B in annual revenue for the first time, with Q4 revenue surging 41% YoY — an acceleration from 40% in the prior quarter.
- Microsoft 365 Copilot grew to 30M+ paid seats from 20M+ in Q3, a 50% jump in three months, with Microsoft noting workers now use Copilot as much as Teams and Outlook.
- Microsoft's commercial RPO more than doubled over the past five quarters to $678B, creating a demand-backed backlog that funds continued AI capex.
- Nadella is pitching swappable AI models as Microsoft scales its own MAI models and Maia chips, with TechCrunch framing this as Microsoft openly competing with OpenAI and Anthropic more than ever.
- Microsoft is extending data center lifespans to soften AI buildout costs, while Bing Ads revenue grew 10% and Xbox continued declining amid layoff expenses.
- GeekWire flagged that record AI spending is cutting into cash flow, even as Azure growth dazzled — a tension shaping the market's take on the print.
Why it matters: Azure crossing $100B while Copilot seats jumped 50% in a single quarter shows AI infrastructure and adoption are converting into revenue at real scale for Microsoft. With a $678B commercial RPO backing continued AI capex, Microsoft is now scaling its own MAI models and Maia chips to compete directly with OpenAI and Anthropic — a clear shift from partner to rival.
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