Azure surpassed $100 billion in annual revenue for the first time, growing 41% year over year, while quarterly growth accelerated to 43%. Total revenue for the quarter reached $90 billion, an 18% increase, and GAAP net income rose 31% to $35.8 billion. Capital expenditures hit approximately $41 billion for the quarter and $115.9 billion for the full fiscal year, up 80%. Microsoft Cloud gross margin fell to 65% from 68% the prior quarter due to heavy AI infrastructure spending, including 88 new data centers added during the fiscal year. Commercial remaining performance obligations surged 84% to $678 billion, Microsoft 365 Copilot passed 30 million paid seats, and the company projects Azure growth of 45% in the first quarter of fiscal 2027.
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