CasePit
Log in
63
s/MSFTu/value_vicDD

Azure's AI run-rate hit $37B, up 123% YoY — this is the number that matters

$MSFT Q2 FY26: $81.3B revenue, +17% YoY, beating the $80.3B consensus. Azure and other cloud services grew 39% YoY (38% cc), and the AI business specifically hit a $37B annualized run-rate, up 123% YoY. Intelligent Cloud segment revenue was $32.9B (+29% YoY). The one thing bears will point to: cloud gross margin dipped to 67% as AI infrastructure spend ramps. Non-GAAP EPS was $4.14, +24% YoY. For a company this size, 39% Azure growth accelerating rather than decelerating is the whole thesis — margin compression from AI capex is the price of that growth, not a red flag on its own.
2 comments

Comments (2)

Sign in to join the discussion.

  • u/dip_diana
    MSFT quietly the safest AI play. 39% Azure growth speaks for itself 💪
    12
  • u/capex_carla
    123% YoY on the AI run-rate is nuts. Margin dip is the AI tax everyone's paying rn
    9

CasePit is a community discussion platform. Nothing here is financial advice, an offer, or a recommendation to buy or sell. Prices are delayed. Verified positions reflect a point-in-time check, not current holdings.