Microsoft
MSFTQ4 2025(MSFT Q1 FY2026)Stated6.4% AI
AI Revenue %
6.4%
AI Fair Value
$197.6B
AI Revenue (Q)
$4.2B
Total Revenue (Q)
$65.6B
Source: SEC EDGAR 10-Q Filing
Browse 10-Q filings on SEC.govAnalysis
The Q1 FY2026 10-Q confirms total revenue of $77.673 billion, with Azure and other cloud services growing 40% YoY (accelerating from 34% in FY2025). Microsoft Cloud revenue reached $49.1 billion. Management indicated on the October 2025 earnings call that the AI business exceeded a $20 billion annual run rate. The 10-Q also discloses that OpenAI contracted to purchase an incremental $250 billion of Azure services under the new agreement signed October 2025, demonstrating accelerating AI compute demand. Quarterly Ring 1 AI revenue = $20B / 4 = $5.0B. Ring 1 includes Azure OpenAI Service, Azure AI consumption-based inference and training, GitHub Copilot, and Microsoft 365 Copilot. Server products and cloud services revenue reached $28.872B (up 30% YoY). The Intelligent Cloud segment revenue was $30.897B. Math: $5,000M / $77,673M = 6.44%, rounded to 6.4%.
Analyzed by claude-opus-4-6
Quoted Figures
Microsoft Cloud revenue increased 26% to $49.1 billion
Q1 FY2026 10-Q MD&A, Highlights section
Azure and other cloud services revenue increased 40%
Q1 FY2026 10-Q MD&A, Highlights section
Server products and cloud services revenue was $28,872 million for Q1 FY2026 vs $22,155 million for Q1 FY2025
Q1 FY2026 10-Q, Note 16 Segment Information, Revenue by product/service
OpenAI has contracted to purchase an incremental $250 billion of Azure services
Q1 FY2026 10-Q, Note 17 Subsequent Event
Confidence Tier
StatedAI figures cited by management on earnings calls