Microsoft Cloud revenue increases 30 percent to $63.9 billion in a quarter

Microsoft gave its results for the 3 months to 30 September 2026. Microsoft Cloud revenue was $63.9 billion, 30 percent more than a year before. Total revenue increased 19 percent to $92.3 billion, and revenue from Azure, its cloud platform, increased 48 percent. Chief executive Satya Nadella tells of more Copilot use and more use of AI agents.

What is new

Microsoft puts its chat, task, automatic work and code tools in one Copilot app. It also moves tools from Dynamics 365, its business software, into Copilot. Nadella tells that Copilot is “the new OS for work”.

Microsoft also connects Windows to Agent 365, its tool to control agents. Agents from OpenAI, Anthropic and Meta use its controlled area on a device, MXC.

The numbers

• Copilot users each day: almost 50 percent more in a quarter.
• Agents in Agent 365: more than 50 million.
• Foundry revenue (its platform for AI software): more than 3 times the revenue of a year before.
• Capital expense: $45.2 billion in the quarter.
• Azure forecast for next quarter: 49 to 50 percent more.

What is not known

Nadella gave no total number of Copilot users. Nadella tells of a user score that is 20 percent more, but did not tell how Microsoft measured it. Microsoft tells that demand is more than its supply.

Insight: Microsoft earns from agents that are not its own

Microsoft tells that agents from other firms use MXC, and that Agent 365 holds more than 50 million agents. A survey found that only 18 percent of workers select Copilot when ChatGPT is also available. This reads as a toll gate: if Copilot does not get the user, Microsoft can control where agents work. Leaders must see if other firms keep MXC.