Microsoft cloud growth accelerates to fastest pace since 2022

Microsoft's Azure cloud unit reported its fastest revenue growth in four years, with a 43% increase in the fiscal fourth quarter that surpassed analyst estimates of 40%. This acceleration, the quickest since early 2022, suggests strong adoption of the company's AI and computing services. For the first time, Azure's annual sales for the fiscal year ending in June topped $100 billion.

Azure cloud revenue growth

• ▪Microsoft's Azure cloud-computing revenue increased by 43% during the fiscal fourth quarter, according to a statement on July 29, 2026.
• ▪Microsoft's cloud unit grew at its fastest pace in four years.
• ▪Azure's 43% revenue growth in the fiscal fourth quarter topped the average analyst estimate of about 40%.
• ▪The 43% quarterly growth was the fastest for Microsoft's Azure since early 2022.

Microsoft fiscal performance

• ▪The growth in Microsoft's cloud unit suggests its AI and computing services are making inroads with business customers.
• ▪For the fiscal year ending in June 2026, Microsoft's Azure sales exceeded $100 billion for the first time.

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