tech

April 29, 2026

Microsoft beats on top and bottom lines with 40% Azure growth

Microsoft's Azure growth beat consensus, and corporate adoption of the Copilot artificial intelligence assistant is growing. Capital expenditures fell short.

Microsoft beats on top and bottom lines with 40% Azure growth

TL;DR

  • Microsoft's adjusted earnings per share were $4.27, surpassing the expected $4.06.
  • Revenue reached $82.89 billion, exceeding the consensus estimate of $81.39 billion.
  • Revenue from Azure and other cloud services grew by 40%, beating analyst expectations.
  • The Intelligent Cloud segment generated $34.68 billion in revenue, higher than the consensus.
  • Productivity and Business Processes segment revenue was $35.01 billion, up 17% and above estimates.
  • Microsoft's 365 Copilot AI add-on now has over 20 million seats, up from 15 million in January.
  • More Personal Computing revenue was $13.19 billion, a 1% decrease.
  • Annualized revenue from AI altogether stands at $37 billion, a 123% increase.
  • Quarterly capital expenditures were $31.9 billion, falling short of the $34.9 billion consensus.
  • Gross margin was 67.6%, the narrowest since 2022, due to increased depreciation costs.
  • Microsoft has $627 billion in commercial remaining performance obligations, up $2 billion from the prior quarter.

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