Microsoft Exceeds Expectations with Strong Q4 Earnings Growth

Microsoft (MSFT) released its Q4 2026 earnings report, exceeding expectations across several key areas. Total revenue for the quarter reached $90 billion, an 18% increase driven by strong demand for Azure and first-party AI applications.

The company's cloud business saw significant growth, with Microsoft Cloud Revenue reaching $59.3 billion for the quarter. This marks a 27% year-over-year increase and surpasses $214 billion in total revenue for the full fiscal year.

Microsoft also reported strong growth in its Commercial Remaining Performance Obligation (RPO), which reached $678 billion, representing an 84% year-over-year increase. This reflects long-term customer commitments and highlights the company's growing cloud presence.

Nadella attributed sales growth in Copilot to 'record usage intensity,' with average weekly engagement now comparable to Outlook and Teams. The company also announced a partnership with Mistral to bring models to the Microsoft Sovereign Cloud, targeting customers with high data compliance requirements.