Microsoft reported Q4 FY26 revenue of $90B, up 18% year over year, with Azure and other cloud services growing 43%. The cloud division cracked the $100B mark across the full fiscal year for the first time. Microsoft 365 Copilot crossed 30 million paid seats, with net seat adds more than doubling quarter over quarter.
Net income reached $35.8B, up 31%, while operating income rose 21% to $155.2B for the full fiscal year. Commercial remaining performance obligations jumped 84% to $678B, the sharpest signal yet that enterprise AI demand is compounding across the Microsoft stack.
CEO Satya Nadella used the earnings call to confirm that Microsoft is building an AI “super app” that merges Copilot’s chat, coding, and agentic capabilities into a single experience spanning consumer and commercial use. “Copilot is evolving rapidly from chat to Cowork to Autopilots,” Nadella said. The super app is expected to launch later this year.
Azure delivered robust momentum, with constant-currency growth hitting 32%. The Intelligent Cloud business recorded $39.3B in the quarter. Nadella attributed the surge to AI, noting enterprises are steadily bringing production tasks over to the cloud.
The results underscore a broader trend: enterprise AI spending is real and growing fast. Microsoft’s $678B in commercial RPO, much of it tied to long-term AI and cloud commitments, suggests customers are betting big on AI infrastructure and are locking in multiyear contracts to secure capacity and pricing.
