Microsoft tops cloud growth estimates, easing concerns

Microsoft's Azure cloud revenue rose 43% in fiscal Q4, beating analysts' 39.98% estimate, signaling that heavy AI infrastructure spending is paying off. The company reported a contracted backlog of $678 billion and 30 million M365 Copilot paid seats. Despite capacity constraints expected through 2026, strong AI demand and strategic deals helped ease concerns. Overall revenue rose 18% to $90 billion, with adjusted per-share profit of $4.74, exceeding expectations.