Microsoft, a global powerhouse in software development, ended the fiscal year with $90 billion in quarterly revenue.
Microsoft, in its earnings report, cited strong cloud growth and an increase in paid AI subscribers.
Microsoft’s revenue targets rose 18% to $90 billion in the final quarter of the fiscal year.
The results show an optimistic sign of the company’s AI revenue growth approach to investing aggressively in data centers.
According to the statement issued on Wednesday, July 29, the company stated that its net income was recorded at $35.77, an increase from $27.23 billion in the same quarter last year.
On the artificial intelligence front, the company posted a net profit of $3.2 billion thanks to its ambitious investment in artificial intelligence lab Anthropic.
Microsoft’s gaming company Xbox took a non-cash charge, with revenue falling to 10% even as the company posted strong profits.
According to the earnings release, the company said its cloud revenue increased 28%, which previously stood at $59.3 billion, while its remaining business performance obligation increased 84% to $678 billion.
Microsoft’s cloud computing platform Azure posted quarterly revenue of $39.31 billion, up 31.6% from a year earlier.
Microsoft CEO Satya Nadella said revenue from the company’s cloud computing platform Azure surpassed $100 billion in fiscal 2026 for the first time, an increase of 41%.
“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached more than $30 million, reflecting the trust they are placing in us to drive their AI transformation,” Nadella said.
