“`html
Microsoft reported a significant increase in its security business, now serving nearly 1.5 million security customers, as part of a broader strategy to prioritize security investments. In fiscal year 2025, Microsoft Cloud revenues exceeded $168 billion, marking a 23% increase. The integration of AI into the security framework has enhanced threat detection, processing over 100 trillion security signals daily.
In September 2025, Microsoft upgraded its Sentinel SIEM platform to an AI-driven model, featuring autonomous Security Copilot agents that improve threat detection and response efficiency. The platform now secures nearly 2 million generative AI applications and boasts a data lake that reduces ingestion costs by up to 50% compared to traditional solutions.
In the competitive landscape, Palo Alto Networks reported AI-related annual recurring revenues of approximately $545 million for fiscal Q4 2025, growing over 2.5 times year-over-year. Meanwhile, CrowdStrike announced a revenue of $4.24 billion for fiscal 2025, reflecting 23% growth. Both companies are increasingly incorporating AI features to compete with Microsoft’s expansive security platform.
“`
