Azure Revenue Surges as Agents Revolutionize Cloud Computing
Microsoft's Azure revenue grew 43% year over year in its fiscal fourth quarter ended June 30, 2026, surpassing $100 billion in full-year revenue. CEO Satya Nadella attributed the strength to the rise of agents, which he called a 'new paradigm' at the Microsoft Build conference on June 2, 2026.
Azure is the cloud layer that powers these agents, and more agent activity typically means more Azure usage. The number of customers using both Microsoft Fabric and Foundry grew 60% year over year last quarter, with those Foundry-built agents running on Azure creating a tailwind for cloud growth.
The number of Foundry customers consuming 1 trillion tokens annually grew 4x versus the year-ago quarter. CFO Amy Hood said additional Azure compute capacity brought online during the quarter was 'quickly monetized,' yet Azure remains supply-constrained, leading Microsoft to expect Azure revenue to accelerate again to about 45% year over year on a constant-currency basis in fiscal Q1 2027.