Azure Growth Fuels Microsoft's Record-Setting Backlog

Microsoft's fourth-quarter results delivered a record-breaking beat, with revenue of $90.0 billion, up 18 percent year over year, and adjusted earnings per share of $4.74 against a consensus estimate of $4.24.

Azure grew 43 percent in the quarter, pushing its annual run rate past the $100 billion mark for the first time, with management's guidance calling for Azure growth of 45 percent in the first quarter of fiscal 2027.

The company's remaining performance obligations, or backlog, now stand at a record-breaking $678 billion, an 84 percent jump from a year earlier, and Morningstar notes that AI applications contribute 11 percentage points of Azure's growth, a structural driver rather than a cyclical one.