Microsoft has ended its fiscal year with promising numbers. CEO Satya Nadella shared the results after the company’s earnings call, pointing to a record year for the tech giant.

The company brought in $331 billion in annual revenue, showing an 18% rise from the previous year. Their cloud business also reached $214 billion in revenue. One of the highlights was Azure, which crossed the $100 billion mark after growing 41%.

Now, the CEO says Microsoft is focusing on two key areas – building AI systems that can work with different models and making Copilot faster and better.


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Microsoft is working on a new AI system that can use different AI models instead of depending on just one, he said. This can help the company control costs and keep its services running smoothly if one model has problems. The company is already using this system on their own products and says it is working well. The company also plans to offer the same system to customers through Microsoft Foundry.

His second focus area is improving Microsoft Copilot. The CEO says Microsoft is adding new features, including Cowork and Autopilots, while also working to make Copilot more useful and faster.

He says user satisfaction has doubled in the past three quarters, while Copilot’s response time has improved by 25%.

According to Nadella, more people are using Copilot regularly and spending more time with it. Weekly use is now similar with apps like Outlook and Teams. The number of companies using Copilot for more than 50,000 employees has increased seven times in one year.

More companies are also giving Copilot to their employees and the number has been rising by nearly 75% in the latest quarter.

Microsoft plans to bring all its Copilot features into one app. The app will combine tools for regular users and businesses, which makes it easier to access Copilot services in one place. Nadella says he is very excited about this new step.

Just wrapped our earnings call.

It was a very strong close to what was a record fiscal year for Microsoft.

· Annual revenue: $331B, +18%
· MS Cloud: $214B, + 27%
· And Azure: $100B, +41%

And even bigger opportunity ahead!

I wanted to share some more perspective on two areas…

— Satya Nadella (@satyanadella) July 29, 2026

During the earnings call, Microsoft CFO Amy Hood explained that the company made $90 billion in revenue, which is 18% more than the same period last year. Their gross profit and operating income also grew. Its earnings per share increased 23% to $4.74, after adjusting for the effect of its investment in OpenAI.

Some special items also helped Microsoft’s results. These included a $3.2 billion gain from its investment in Anthropic and lower employee retirement costs. These gains were partly reduced by severance costs and Xbox related charges. Even without these benefits, the company still did better than expected. Hood said strong customer demand and good business performance helped the company beat their targets for revenue, operating income and earnings per share.