Overview
- Fiscal Q2 2026 revenue rose 17% to $81.3 billion, with Azure up 39% year over year and growth described as capacity constrained.
- Microsoft Cloud topped $50 billion in quarterly sales, underscoring strong enterprise uptake of AI services and Copilot integrations.
- The company spent $37.5 billion on AI infrastructure last quarter and is ramping data-center buildouts to relieve Azure supply bottlenecks.
- Copilot upgrades and a new Microsoft 365 E7 tier priced at $99 per user per month are set for May 1, with the rollout intended to boost adoption and monetization.
- Shares have fallen roughly 20%–28% from 2024 highs, putting the forward P/E near 22x as analysts debate downside risks versus upside tied to Microsoft’s OpenAI partnership.