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Forbes

Microsoft shifts cloud growth narrative to AI agents and usage-based billing as Microsoft Cloud tops $168 billion in fiscal 2025

AI Market Summary
Microsoft's results and commentary suggest a durable shift from one-off cloud migrations to AI-driven, usage-based monetization. Microsoft Cloud annualized revenue surpassed $168B in FY25 (+23%) and $214B in FY26 (+27%), with GitHub Copilot revenue up over 60% QoQ. While Intelligent Cloud margins saw mix effects and Azure remains capacity-constrained, accelerating companywide growth and record net margin support positive near-term read-through for MSFT.
Impact level
● Medium
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AI Insight · NCSKMSFT2USD/USDTAI Insight
▲ Bullish
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Microsoft said Microsoft Cloud annualized revenue exceeded $168 billion in fiscal 2025, up 23%. GitHub Copilot revenue rose more than 60% quarter on quarter as the company expanded usage-based pricing, supporting growth in its commercial cloud business. Overall revenue growth accelerated to 17.8%, while net margin reached 40.3%, a three-year high.