Microsoft Azure Revenue Surpasses US$100 Billion for the First Time

Microsoft Corp. said its Azure cloud computing business generated more than US$100 billion in revenue during fiscal year 2026, reinforcing investor confidence despite broader market concerns over artificial intelligence spending and U.S. inflation, Amanda Gerut reported for Fortune Tech.

Microsoft reported record Azure cloud revenue as demand for artificial intelligence infrastructure continued to expand. [Image: Microsoft Azure Facebook]

Azure revenue increased 41 percent from approximately US$75 billion a year earlier, strengthening Microsoft's position as one of the world's leading cloud computing and AI infrastructure providers alongside Amazon Web Services (AWS).

For fiscal year 2026, Microsoft reported total revenue of US$331.8 billion, while earnings per share rose 32 percent to US$17.95.

The company said earnings benefited from a US$3.2 billion gain on its investment in Anthropic and nearly US$5 billion in gains from its investment in OpenAI.

Microsoft shares rose more than 8 percent in after-hours trading despite a broader market selloff.

For the fourth quarter, cloud revenue increased 43 percent year over year, helping lift quarterly revenue to US$90 billion, above analysts' estimates of US$87.7 billion.

The company's remaining performance obligations—signed customer contracts yet to be recognized as revenue—rose 84 percent to US$678 billion.