Microsoft's AI Bet Pays Off as Azure Surpasses $100 Billion in Revenue

Microsoft's AI spending has generated significant demand for its services, according to CEO Satya Nadella. The company reported fourth-quarter fiscal 2026 revenue of $90.01 billion, beating the consensus estimate of $87.62 billion.

Azure crossed $100 billion in annual revenue for the first time, growing 43% year over year. Copilot, a product that launched fewer than three years ago, surpassed 30 million paid seats, with net seat additions more than doubling quarter over quarter.

Net income rose 31% to $35.8 billion, partly boosted by a $3.2 billion gain from Microsoft's investment in AI lab Anthropic. The company returned $10.2 billion to shareholders through dividends and share repurchases in the fourth quarter alone.