Satya Nadella reports record fiscal year for Microsoft Corp with revenue surpassing $331 billion
Microsoft Corp reported a record fiscal year with annual revenue exceeding $331 billion, marking an 18% year-over-year increase. The company's Intelligent Cloud segment, featuring Azure, saw significant growth, with Azure revenue surpassing $100 billion for the first time in the 2026 fiscal year. Azure revenue grew 43% in the fourth quarter, driven by efficiency gains and strong demand that continues to exceed available supply. Satya Nadella, Chairman and CEO of Microsoft Corp, highlighted the rapid evolution of Microsoft 365 Copilot, which now has over 30 million paid seats. The company is expanding its business model to include usage-based billing for Copilot and GitHub Copilot. While the Xbox gaming business saw a 10% decrease in revenue due to impairment charges, the Productivity and Business Processes segment, which includes Office and LinkedIn, grew by 14.3%. Amy Hood, CFO of Microsoft Corp, noted that while capital expenditures are expected to grow in FY27, the company remains confident in the return on invested capital due to a diverse portfolio of high-value applications and first-party silicon investments.