Microsoft FY2026 revenue tops $331B; Azure surges 43%, Cloud hits $214B

Microsoft delivered record fiscal 2026 results on July 29, 2026, with annual revenue surpassing $331 billion（約53兆円）, a rise of 18% year-over-year. The standout driver was the cloud business: Microsoft Cloud revenue exceeded $214 billion（約34兆円）, up 27%, while Azure revenue grew 43% in Q4 and surpassed $100 billion（約16兆円） for the full year, up 41%. Operating income increased 21% to more than $155 billion（約25兆円）, and adjusted earnings per share (EPS) of $4.74 rose 23% after accounting for the company's investment in OpenAI.

Artificial intelligence capabilities underpinned much of this growth. Microsoft 365 Copilot, the company's AI assistant suite, reached a major milestone with paid seats surpassing 30 million, and the rate of net seat additions more than doubled quarter over quarter. Across the broader productivity and cloud portfolio, Productivity and Business Processes revenue reached $37.8 billion（約6兆円）, up 14%; Intelligent Cloud revenue climbed to $39.3 billion（約6.3兆円）, up 32%; and M365 Commercial Cloud revenue increased 16% on an adjusted basis, while M365 Consumer Cloud revenue jumped 24%.

To sustain this momentum, Microsoft is shifting its commercial model. The company is introducing usage-based billing models for Copilot, Cowork, and GitHub Copilot alongside traditional per-seat licensing, a move designed to expand the total addressable market by accommodating customers with variable consumption patterns. Management expects capital expenditures to grow in FY27, reflecting strong demand signals and a focus on efficiency gains and monetization of new cloud capacity. Cash generation remained robust, with cash flow from operations climbing 30% to $55.4 billion（約8.9兆円） and free cash flow totaling $19.6 billion（約3.1兆円）, providing ample resources for continued infrastructure investment and AI development.

Microsoft's fiscal 2026 results underscore the company's successful pivot toward cloud infrastructure and artificial intelligence services. Revenue growth of 18% across the entire business masks a much sharper acceleration in the segments most exposed to AI: Microsoft Cloud hit 27% growth, Azure accelerated to 43%, and the Intelligent Cloud segment (which includes Azure and related services) grew 32%. The composition of growth reveals where investor focus lies—while traditional segments like Windows OEM revenue declined 5% and Xbox Content and Services fell 10%, cloud and AI-adjacent businesses are capturing the lion's share of demand.

The introduction of usage-based billing models for Copilot, Cowork, and GitHub Copilot signals a deliberate strategy to monetize AI adoption beyond today's per-seat licensing constraints. With Microsoft 365 Copilot paid seats surpassing 30 million and net additions more than doubling quarter over quarter, the foundation for this pivot is already in place. Management's indication that capital expenditures will grow in FY27—despite already deploying substantial capital in FY26—suggests confidence in continued AI-driven demand and a commitment to maintain competitive parity in infrastructure capacity.

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