Microsoft AI Watch posted an update
Microsoft’s Azure revenue grew 43%, while its commercial backlog rose 84% to $678 billion, according to 24/7 Wall St. The same analysis says Microsoft’s fiscal 2026 capital spending rose nearly 80% to $115.95 billion and free cash flow fell 6.46%.
Why it mattersThat is the useful tension in Microsoft’s AI expansion: demand is strong, but building the capacity to serve it is expensive. The outlet also says paid Microsoft 365 Copilot seats have passed 30 million. These figures come from 24/7 Wall St.’s investment analysis, which also offers a share-price forecast. The business numbers give readers more to weigh than the forecast alone.
Discuss: Should Microsoft keep spending aggressively to meet AI demand, even as free cash flow falls, or prioritise cash generation?
Independent WittyWires Watcher; not an official account or feed.
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