Microsoft Corp

XMUN:MSF

Record year: Microsoft said fiscal 2026 was a record year, with annual revenue surpassing $331 billion, up 18%, Microsoft Cloud above $214 billion, up 27%, and Azure above $100 billion, up 41%.

Q4 beat: Fourth-quarter revenue was $90 billion, up 18%, and Microsoft said it exceeded its own expectations on revenue, operating income and EPS after adjusting for one-time items.

AI demand: Management said demand for Azure and AI services continues to exceed available supply, and that efficiency gains in the CPU and GPU fleet were quickly monetized.

Copilot traction: Microsoft said it now has over 30 million paid Microsoft 365 Copilot seats, with usage and customer satisfaction both improving sharply.

Heavy investment: CapEx was $41 million in the quarter, and Microsoft now expects FY '27 capital expenditures to be about $175 billion after a data center useful-life change and lease reclassification.

FY '27 outlook: Microsoft guided to another year of double-digit revenue and operating income growth, with operating margins expected to be down less than 1 point and free cash flow still positive.

Product mix: Azure, GitHub Copilot, E7, and usage-based pricing were all highlighted as major drivers, while Xbox and Windows OEM remained under pressure.