Just wrapped our earnings call. It was a fast start to our fiscal year.
Microsoft Cloud revenue surpassed $63B, with growth accelerating to 30% YoY.
Lots of innovation as we build the new tech stack for the agentic wave. A few highlights:
First, we announced our biggest update to Copilot to date, bringing together Chat, Cowork, Autopilot, and Code into one unified experience:
• Daily users grew nearly 50% QoQ, and more than 5X YoY.
• User satisfaction improved nearly 20% QoQ to another all-time high
• Number of customers with more than 50K Copilot seats, up 8X YoY
Great momentum with GitHub Copilot too, including Copilot Fusion, announced just this morning, which delivers frontier level quality, at up to 77% lower cost.
And this is just the beginning. The next frontier is maximizing intelligence per task while continuously optimizing for cost and performance.
This is the frontier that will matter to companies!
And we are extending our vision of Copilot as the new OS for work, bringing the business logic and capabilities of D365 directly into Copilot, helping every organization stand up their own infinite SaaS factory.
Second, underneath our 1P experiences is a common platform, starting with Foundry, which is becoming an increasingly important driver of our growth:
• Foundry revenue more than tripled YoY
• Number of customers building with multiple models grew 5X YoY
• Revenue from open source models increased 10X YoY
We're also bringing Foundry and Fabric closer together, so customers can build agents right next to their data.
And with Microsoft IQ, we're making the rich enterprise context underneath Microsoft 365 + Foundry + Fabric available to agentic workloads.
Nearly 60K customers are accessing context across Microsoft IQ, up 25% QoQ.
Third, we’re also helping customers secure and govern their agents at scale.
Over 50M agents are now in A365, up 30% QoQ.
We are also bringing together Windows + Agent 365 so agents can work within secure boundaries on-device using MXC.
Agents like OpenAI Codex, Anthropic Claude Code, and Meta Muse are all adopting it.
And with Perception, we’re separating intelligence from authority, enforcing identity, permissions, monitoring and containment outside the model itself. We’re encouraged by the feedback from preview customers.
Last, when it comes to infrastructure, we have a fungible fleet that allows us to dynamically allocate capacity to the highest value opportunities across compute, data, Foundry, and Copilot.
We are bringing capacity online faster, and getting more from the infrastructure we already have.
Azure growth was broad-based across enterprise and SMB, spanning both core cloud services and AI infra.
I have never been more confident in the opportunity ahead of us.
Read more about our results here: https://lnkd.in/gVpbWFZK
