Microsoft Earnings: Azure Hits 43% Growth, Copilot Exceeds 30M Paid Seats
RihardJarc · x · 2026-07-30
Microsoft's latest earnings report highlights three key AI trends:
- Azure Growth & Broad Demand: Azure grew 43% YoY, with guidance accelerating to 45%. Notably, nearly 90% of cloud revenue and sequential commercial RPO growth came from customers outside frontier model companies.
- Flexible CapEx Strategy: Microsoft hasn't blindly raised CapEx, emphasizing efficiency gains across its CPU/GPU fleet to squeeze more tokens. They noted they could flexibly dial back chip purchases if demand cools, while their investments in land and data center builds remain strategically sound.
- Copilot Turning the Corner: Multi-model orchestration is surging (5x increase in customers using multiple providers). Microsoft 365 Copilot surpassed 30 million paid seats (net adds more than doubled QoQ), with weekly engagement on par with Outlook and Teams, and revenue accelerating over 60% QoQ.
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