Microsoft on Thursday reported fiscal fourth-quarter revenue of $90.0 billion, beating the consensus estimate of $87.7 billion. Adjusted earnings per share came in at $4.74, above the $4.25 analysts expected. The results were driven by a 43% surge in Azure and other cloud services revenue, which outpaced the company's own guidance of high-30% growth.
Azure's 43% growth and the cloud business
Operating income hit $40.6 billion, also topping forecasts. The Intelligent Cloud segment climbed 32% year over year to $39.3 billion, while Microsoft Cloud generated $59.3 billion in quarterly revenue, up 27% from a year earlier. Commercial remaining performance obligations jumped 84% to $678 billion, signaling strong future contracted revenue. CEO Satya Nadella noted that Azure generated more than $100 billion in annual revenue for the first time during fiscal 2026.
AI adoption and capital spending
Microsoft 365 Copilot surpassed 30 million paid seats, reflecting growing enterprise adoption of generative AI. Operating cash flow reached $55.4 billion during the quarter. Capital expenditures on property and equipment were nearly $35.8 billion in the quarter and almost $116 billion for the full fiscal year. The company returned $10.2 billion to shareholders through dividends and share repurchases.
Crypto market implications
The article suggests that strong Azure and AI demand has positive implications for crypto markets, including Bitcoin miners and AI-related blockchain projects. With cloud infrastructure increasingly tied to proof-of-work and AI compute needs, Microsoft's buildout could support demand for high-performance computing resources that miners and blockchain AI firms rely on.
Microsoft's commercial remaining performance obligations jumped 84% to $678 billion, indicating years of contracted revenue ahead. The buildout shows no signs of slowing.
