Microsoft's Azure Growth Accelerates as Agentic AI Adoption Rises
Azure revenue grew by 43% year over year in Microsoft’s fiscal fourth quarter ended June 30, 2026. CEO Satya Nadella highlighted the rise of agentic AI at the Build conference on June 2, calling it a 'new paradigm' due to its continuous operation and integration across user files and networks. Microsoft reported that Azure powers these agents, leading to increased cloud consumption as agent usage rises. The number of customers using Microsoft Fabric and Foundry — tools for building custom AI agents — grew by 60% year over year in the same quarter. CFO Amy Hood noted that new compute capacity was quickly monetized despite ongoing supply constraints. Azure is expected to grow at a faster rate, with revenue projected to rise about 45% year over year on a constant-currency basis for fiscal Q1 2027. Microsoft also introduced Agent 365, which allows companies to apply existing security and governance controls from Azure and Microsoft 365 to AI agents.
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Topics: AI agents Azure Microsoft Build conference revenue growth