Microsoft Corporation reported that its Azure cloud platform achieved annual revenues exceeding $100 billion for the first time, concluding fiscal 2026 with total revenues of $331.8 billion, an 18% increase year-over-year. During the fiscal fourth quarter ending June 30, 2026, Azure and other cloud services grew by 43%, contributing to a full-year growth rate of 41% for Azure itself.
Microsoft’s total cloud revenues, which include Azure and Microsoft 365 Commercial, surpassed $214 billion for the year, marking a 27% increase. The company reported fourth-quarter net income of $35.8 billion, a 31% increase, alongside adjusted earnings of $4.74 per share. As part of its expansion, Microsoft added 31 datacenters in the fourth quarter and anticipates revenue growth of approximately 45% for Azure in the upcoming fiscal first quarter of 2027.
Despite Azure’s accelerating growth, concerns remain regarding valuation, as Microsoft’s shares have seen only a 1.9% return in 2023 compared to an 18.6% rise in the broader tech sector. Moreover, future operating margins are projected to decline slightly due to increased investments in AI infrastructure, with expectations of falling revenues from Windows OEM and Devices amid weaker PC demand.
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