Microsoft

The Q2 FY2026 10-Q confirms total revenue of $81.273 billion, with Azure and other cloud services growing 39% YoY. Microsoft Cloud revenue reached $51.5 billion (up 26%). Management stated on the January 2026 earnings call that the AI business exceeded a $22 billion annual revenue run rate, and AI contributed approximately 13 percentage points to Azure's 39% growth. Server products and cloud services reached $30.865B (up 30.5% from $23.641B). The 10-Q describes Azure as including 'cloud and AI consumption-based services.' Quarterly Ring 1 AI revenue = $22B / 4 = $5.5B. Ring 1 includes Azure OpenAI Service (GPT-4, GPT-4o, o1 model API consumption), Azure AI inference/training compute, GitHub Copilot, and Microsoft 365 Copilot. Ring 2 exclusions: LinkedIn AI features, Dynamics 365 Copilot, Windows Copilot, traditional Office AI features. The $22B run rate is an exit-rate figure; dividing by 4 conservatively averages across the quarter. Commercial remaining performance obligation surged 110% to $625 billion, partly driven by the OpenAI Azure commitment. Math: $5,500M / $81,273M = 6.77%, rounded to 6.8%.