Microsoft Cloud Growth Hits Record Heights as Azure Surpasses $100 Billion Mark

Microsoft's cloud computing business continues to grow at an impressive rate, with its cloud revenue up by 27% year-over-year in its fiscal 2026 fourth quarter. The company's sales backlog also grew significantly, reaching $678 billion, a staggering 84% increase from the same period last year.

This growth is largely due to the success of Microsoft Azure, which has topped $100 billion in annual recurring revenue. This achievement underscores the increasing importance of cloud computing in the tech industry, driven by the growing demand for enterprise solutions fueled by artificial intelligence.

As a result, Microsoft's forward P/E ratio of 25 seems quite reasonable, especially considering the company's strong fundamentals and predictable future growth. The stock has largely missed out on AI-driven momentum this year, but its low valuation combined with robust revenue and net income growth rates may make it an attractive investment opportunity for patient investors.