Microsoft Azure Cloud Sales Surpass $100 Billion Milestone

Microsoft reported that its Azure cloud business surpassed $100 billion in annual sales for the first time in fiscal year 2026. This milestone represents a 41% increase from 2025 and exceeded investor expectations, contributing to an 18% rise in the company's share price within one week and a 29% increase over the past month.

The company maintained a positive free cash flow of $19.6 billion in its fiscal fourth quarter of 2026, despite recording $175 billion in capital expenditures for the fiscal year. This financial performance contrasts with competitors Alphabet and Meta Platforms, which experienced significant declines in free cash flow due to heavy spending on artificial intelligence infrastructure.