Azure Hits $100 Billion, but Microsoft Stock Still Trails the Market

Microsoft's Azure platform has reached a significant milestone, surpassing $100 billion in annual sales for the first time. The company made this disclosure on its earnings call for the fourth quarter of fiscal 2026, which ended June 30.

The news may have been more impactful if it hadn't been the first public revelation of Azure's revenues. However, Microsoft has since committed to regularly reporting Azure revenue moving forward.

Despite this achievement, Microsoft stock has only made modest gains in 2026, with a year-to-date increase of about 3%. The company's massive capital expenditures, which totaled $116 billion in fiscal 2026, may have contributed to investor concerns. Additionally, its Copilot platform faces competition from other AI engines, and its tight relationship with OpenAI has been both beneficial and limiting.

Microsoft's revenue increased by 18% to $332 billion in fiscal 2026, while the cost of revenue and expenses grew more slowly. As a result, the company earned 31% more than it did in the previous year, reporting $134 billion in net income for the fiscal year.