Microsoft Finally Reveals Azure's $29.4 Billion Core
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Microsoft Finally Reveals Azure's $29.4 Billion Core Khac Phu Nguyen Thu, September 3, 2026 at 5:34 PM EDT 1 min read MSFT This article first appeared on GuruFocus . Microsoft ( NASDAQ:MSFT ), the enterprise-software and cloud-computing giant, traded at $512.72 Wednesday as it finally pulled back the curtain on Azure. The cloud engine produced $29.4 billion last quarter and $101.9 billion during the fiscal year ended June 30. Investors no longer have to guess how much revenue Microsoft's most important growth machine actually generates. Warning! GuruFocus has detected 3 Warning Sign with MSFT. Is MSFT fairly valued? Test your thesis with our free DCF calculator. The company is also replacing three reporting segments with two sharper operations: Agents and Infra, plus Devices and Consumer. Its fiscal fourth-quarter results showed Microsoft Cloud revenue of $59.3 billion, Azure growth of 43% and commercial remaining performance obligations of $678 billion. The message is blunt: artificial intelligence and the infrastructure powering it now sit at the heart of Microsoft's financial story. Azure generated approximately 49.6% of quarterly Microsoft Cloud revenue, giving investors a cleaner test of whether massive AI spending is winning market share or simply riding a larger cloud market. The stock's $512.72 price also stood 11.82% below its GF Value estimate of $581.42, pointing to a potential valuation gap. Greater transparency changes none of Azure's economicsbut it makes execution easier to reward and failure much harder to hide.
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