Microsoft 365 Seats Surge Amid Premium SKU Adoption
Microsoft's (MSFT) Microsoft 365 Commercial seats grew by 6% year-over-year, reaching paid seat additions of more than double sequentially in the fourth quarter of fiscal 2026. The number of paid Microsoft 365 Copilot seats exceeded 30 million during this period.
The adoption of premium SKUs, including the E7 offering that combines Copilot with other features, is adding another growth avenue for the company. Early adoption suggests growing interest in integrated AI and security capabilities, with hundreds of enterprise customers purchasing millions of E7 seats within two months of its launch.
However, lower average revenue per user from new frontline and small and medium-sized business seats could temper the near-term benefit from higher seat volumes. Nevertheless, continued Copilot adoption and premium SKU expansion are expected to support Microsoft 365 Commercial cloud growth, with revenue growth accelerating through fiscal 2027.