Microsoft's $41B AI spending drives Azure growth and beats expectations

Microsoft's $41 billion AI investment boosted Azure revenue growth to 43%, exceeding Wall Street's 40% expectation.

Azure, Microsoft's cloud computing platform, recorded its fastest revenue growth in about four years.

Microsoft's quarterly revenue reached $90 billion, an 18% increase year-over-year, beating analysts' estimates of $87.6-$87.7 billion.

The company reported adjusted earnings of $4.74 per share, higher than the estimated $4.25 per share, with profit up 31.6% to $35.8 billion.

Capital expenditure surged 70% to $41 billion for building AI data centers and infrastructure, totaling $145.3 billion for fiscal 2026.