Microsoft Reports Azure Revenue Surpassed $100 Billion for the First Time
During Microsoft’s fourth-quarter fiscal 2026 earnings call, it revealed that its cloud platform, Azure, has crossed a significant milestone by generating over $100 billion in annual revenue. This marks the first time Azure has reached this level and is notable as prior disclosures of such figures were not made public before now. Microsoft plans to regularly report on Azure’s performance going forward. Despite this achievement, Microsoft stock (MSFT) underperformed compared to its peers throughout 2026. The company's shares are up only about 3% year-to-date and had previously dropped by nearly 27%. Concerns over high capital expenditures—$116 billion in fiscal 2026—and the perception that Microsoft’s AI offerings, such as Copilot, lag behind alternatives have contributed to investor hesitation. Additionally, its reliance on OpenAI for early AI development may have slowed internal progress. Microsoft reported an overall revenue increase of 18% year-over-year to $332 billion in fiscal 2026 and a net income rise of 31% to $134 billion. While the company remains profitable, its stock valuation appears less attractive compared to rivals like Alphabet (GOOGL) and Amazon (AMZN), which offer higher growth at lower P/E ratios.
Topics: Azure revenue milestone cloud computing Microsoft earnings