Microsoft is increasingly leveraging artificial intelligence (AI) to generate recurring revenue through its Copilot subscription services. During the second quarter of fiscal 2026, the number of paid Microsoft 365 Copilot seats surged by over 160% year over year, reaching approximately 15 million. Enterprise deployments of Microsoft 365 Copilot also tripled year over year, with a tenfold increase in daily active users.
The company’s strong financial performance includes a 17% year-over-year rise in Microsoft 365 Commercial Cloud revenue, which is partly driven by higher revenues from Copilot and premium subscriptions. Microsoft’s new Microsoft 365 E7 subscription tier, launching May 1, 2026, is priced at $99 per user per month—65% higher than the previous top-tier plan. Additionally, GitHub Copilot gained 4.7 million paid subscribers, marking a 75% year-over-year increase.
Microsoft’s distribution advantage positions it well for continued AI monetization. The company reported Fabric surpassing a $2 billion annual revenue run rate, serving over 31,000 customers with a 60% year-over-year revenue increase. Over 80% of Fortune 500 companies have active AI agents developed through Microsoft’s Copilot tools, indicating robust adoption across various sectors.
