Overview
- Microsoft reported fiscal fourth‑quarter revenue of $90.0 billion after the company’s mid‑August earnings report, with Azure revenue accelerating 43% and annualized Azure revenue topping $100 billion.
- The company said it now has more than 30 million paid Microsoft 365 Copilot seats and about 50 million GitHub Copilot users, and it disclosed a contracted cloud backlog of roughly $648–$678 billion that gives multi‑quarter revenue visibility.
- Capital expenditures reached $41 billion in the quarter and management expects capex above $50 billion next quarter, a pace that pushed free cash flow down to about $19.6 billion and is the main near‑term financial risk.
- Wall Street has grown more bullish on the growth story with several firms raising price targets (for example JPMorgan and Wells Fargo), even as investors have rotated money into AI hardware and infrastructure suppliers such as Nvidia and server vendors.
- The key questions going forward are whether Microsoft can convert massive infrastructure spending into higher‑margin, recurring software revenue and how GPU supply, competition and regulatory scrutiny will affect that transition and enterprise adoption.