By Diego Almada Lopez
Publication Date: 2026-10-10 14:54:00
Microsoft’s cloud business accelerated in the quarter ended June 30, 2026. Azure and other cloud services grew 43% year over year, up from 40% the quarter before.
Microsoft reported the results on July 29, 2026.
The numbers behind the acceleration
Full-year Azure revenue topped $100 billion for the first time, up 41% year over year.
Total company revenue for the fourth quarter reached $90 billion, an 18% increase. Microsoft Cloud, the broader bucket that includes Azure and commercial cloud products, brought in $59.3 billion, up 27%.
GAAP net income came in at $35.8 billion, a 31% jump from the prior year.
The spending side of the ledger
Capital expenditures in the fourth quarter hit approximately $41 billion. For the full fiscal year, additions to property and equipment reached $115.9 billion, up 80% year over year.
Microsoft added 31 data centers during the fourth quarter alone and 88 across fiscal 2026.
Microsoft Cloud gross margin fell to 65% in the…