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Microsoft Corporation sells software and cloud services alongside devices, content and advertising. Businesses buy tools for work and collaboration, and computing, storage and network resources. Cloud delivery requires shared datacenters, software development and application support. Microsoft describes pooling different customers' workloads to improve utilization and sharing application infrastructure to reduce maintenance labor costs. This can spread delivery costs across more activity, but is a described mechanism rather than a demonstrated return on each infrastructure investment. Microsoft’s reporting year ends in June; year and quarter labels follow that calendar.
Microsoft Cloud revenue reached $214.4 billion in 2026, up 27% versus 2025. Azure and other cloud services revenue grew 41% across those years. Demand is expanding while consolidated property-and-equipment additions have risen from $64.6 billion to $115.9 billion over the same annual comparison. This spending cannot all be attributed to cloud capacity.
Commercial remaining performance obligation reached $678 billion at the end of 2026, up 84% versus the prior year. It measures contracted work still to be delivered and recognized as revenue, adding a view of future demand beyond current sales. It is not cash already collected or a guarantee of profit, and the commercial measure extends beyond a single cloud service.
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