What is Microsoft's commercial remaining performance obligations?

Microsoft reported $677 billion in commercial remaining performance obligations, representing contracted revenue that hasn't yet been recognized, up 73% year over year, although commitments from OpenAI contributed substantially to the growth.

How does CrowdStrike's Falcon Flex subscription model work?

Falcon Flex allows customers to adopt additional security products under a flexible purchasing arrangement, and ARR from accounts adopting this model exceeded $2.29 billion, up 101% from the previous year.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI3m agoNov 8, 2026, 19:01 JST

Microsoft, CrowdStrike software demand grows: $5,000 split

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3 Key Points

What happened
Microsoft's Azure and other cloud services revenue rose 48% year over year to $33.16 billion in its fiscal first quarter of 2027, while CrowdStrike's net new ARR jumped 51% to a record $333 million.
Why it matters
Both companies show customers will pay for AI software, supporting an equal split of $5,000 between Microsoft and CrowdStrike for long-term investors, though Microsoft's capital expenditures reached $45.2 billion and are expected to rise to $50 billion in Q2.

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Context & Analysis

The case for software stocks rests on a simple observation: AI chips and data centers are useless without software to put them to work. Microsoft and CrowdStrike approach this opportunity from different directions, and both are already seeing growing demand for their products.

Microsoft's strategy is paying off in its fiscal first quarter of 2027, which ended Sept. 30. Azure and other cloud services revenue increased 48% year over year to $33.16 billion. The company has also incorporated Copilot in its 365 software suite, and daily Copilot users increased nearly 50% sequentially and more than fivefold year over year. The number of customers with more than 50,000 Copilot seats increased more than eightfold year over year, showing businesses are willing to pay for AI capabilities within software they already use.

CrowdStrike addresses the security risks that AI agents create. CEO George Kurtz suggested that protecting AI agents could eventually become a larger business than traditional endpoint detection and response. The company's existing business is already producing impressive results, with revenue up 26% year over year to $1.47 billion in the quarter ended July 31.

FAQ

What is Microsoft's commercial remaining performance obligations?: Microsoft reported $677 billion in commercial remaining performance obligations, representing contracted revenue that hasn't yet been recognized, up 73% year over year, although commitments from OpenAI contributed substantially to the growth.
How does CrowdStrike's Falcon Flex subscription model work?: Falcon Flex allows customers to adopt additional security products under a flexible purchasing arrangement, and ARR from accounts adopting this model exceeded $2.29 billion, up 101% from the previous year.
How many daily Copilot users does Microsoft have?: Microsoft reported that daily Copilot users increased nearly 50% sequentially and more than fivefold year over year.

Yahoo Finance AIRead Original Article

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