Azure Hits $100B, Microsoft Targets Free Cash Flow in 2027
Microsoft (NASDAQ: MSFT) has reported an impressive fiscal fourth quarter, with revenue growing 18% year-over-year to $90 billion for the period ending June 30, 2026. The company's cloud infrastructure platform, Azure, was a standout performer, seeing sales soar 43% in the quarter and crossing $100 billion in annual revenue for the first time in fiscal 2026.
Copilot, Microsoft's AI assistant, has been driving growth across its product suite, with paid enterprise seats now topping 30 million. The integration of Copilot into Word, Excel, and Teams contributed to a 14% rise in productivity and business processes division revenue to $37.8 billion.
Looking ahead, Microsoft is projecting positive free cash flow in fiscal 2027, despite continued heavy capital expenditure commitments. This comes as the company invests in compute capacity to meet accelerating cloud demand, signing multi-year deals with neocloud providers Iren and Nebius to expand its infrastructure footprint.