Microsoft Azure Surpasses $100B: Q4 Earnings Exceed Wall Street Predictions
Microsoft concluded its fiscal year 2026 with a bang, reporting a quarterly revenue of $90.01 billion. This figure significantly surpassed Wall Street’s consensus estimate of $87.62 billion, marking an 18% increase year-over-year. In addition, the software giant posted adjusted earnings per share of $4.74, exceeding expectations by nearly 12%.
The standout performer was Azure, Microsoft’s cloud computing platform. For the first time in its history, Azure crossed the $100 billion annual revenue milestone. The Intelligent Cloud segment reported $39.31 billion in revenue, a 31.6% increase year-over-year. Furthermore, Microsoft boasts an impressive $678 billion contracted backlog, providing investors with a unique insight into AI-spending that rivals like Alphabet and Meta could not match this earnings season.
CEO Satya Nadella emphasized that the company added an entire gigawatt of data center capacity in the quarter alone. The company remains on track to double its overall data center footprint within two years. Looking ahead, management predicts Q1 fiscal 2027 Azure growth to be approximately 45% in constant currency. The total revenue is projected to be between $89.85 billion and $90.95 billion. Following the earnings release, Microsoft shares surged 16% in the session.
Source: CNBC – Microsoft Q4 Earnings Report 2026
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