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Microsoft's Azure cloud business crossed $100 billion in annual revenue in fiscal 2026, growing 41 percent, as the company beat Wall Street estimates on both earnings and revenue.

Microsoft reported fiscal fourth quarter results that beat Wall Street expectations, driven by accelerating growth in its cloud computing and artificial intelligence businesses. The standout number in Microsoft's fiscal year 2026 report card was Azure, which passed $100 billion in annual revenue and grew 41 percent for the year, according to the company's earnings release. Microsoft Cloud revenue for the full year exceeded $214 billion, up 27 percent, cementing cloud computing as the company's primary growth engine even as it continues to pour billions into AI infrastructure.

Microsoft earnings and revenue beat estimates

For the June quarter, Microsoft posted revenue of $90.01 billion, up 18 percent year over year, comfortably ahead of the $87.62 billion analysts polled by LSEG had expected. Adjusted earnings per share came in at $4.74, well above the $4.24 consensus estimate. Net income for the quarter stood at $35.77 billion, or $4.81 per share, up sharply from $27.23 billion, or $3.65 per share, in the same period last year.

For the full fiscal year, Microsoft's revenue rose 18 percent to more than $331 billion, while operating income climbed 21 percent to over $155 billion. The company's press release stated that fiscal year 2026 was its strongest year yet.