Microsoft Azure Surpasses Expectations as Growth Accelerates
Microsoft's Azure business has drawn praise from analysts following its strong fourth-quarter results and guidance that exceeded expectations. The company reported revenue of $90 billion in Q4 2026, with adjusted earnings per share at $4.81, well above the consensus estimate.
Azure saw a significant growth of 43% in Q4, crossing the $100 billion mark for the first time in fiscal year 2026. Analysts expect Azure to continue its strong performance, with Microsoft forecasting a 45% growth in the unit's revenue for Q1 2027 on a constant currency basis.
Several firms, including Barclays, Morningstar, and Bernstein, have noted the strength of Azure and the company's ability to drive growth through its AI services. However, not all news is positive, as the UK's Competition and Markets Authority has launched an investigation into Microsoft over concerns that customers may not have been given clear information about subscription options.