Overview
- Microsoft reported quarterly revenue of $81.3 billion, up 17% year over year, with adjusted earnings per share rising 24%.
- Cloud sales reached about $51.5 billion, up 26%, as Azure grew 39% on demand for AI workloads from corporate customers.
- Capital spending climbed to $37.5 billion to add data centers and AI chips, reflecting a push to expand capacity for new AI services.
- The U.K. Competition Appeal Tribunal cleared a mass claim over Windows Server pricing to proceed, seeking up to £2.1 billion, and Microsoft said it will appeal and rejects the allegations.
- Regulatory scrutiny of cloud licensing continues in the U.K., Europe, and the U.S., while Microsoft also outlined a $10 billion Japan program for 2026–2029 that includes local AI partnerships and training one million engineers, and reported early AI traction with 15 million paid Copilot seats and 24 billion security-related AI interactions.