On July 29, Microsoft released their FY26 Q4 results. We learned that Microsoft 365 Copilot has 30 million paid seats, but that’s still less than 7% of the Microsoft 365 installed base, so there’s lots of room for Copilot to grow. Microsoft didn’t provide a number for Teams monthly active users, which is strange because no new data has appeared for 11 quarters. Among all the numbers, one thing’s for sure. The Microsoft Cloud makes lots of money.
Microsoft’s FY26 Q3 results produced $54.5 billion revenue for the Microsoft Cloud, the segment that includes Microsoft 365, Azure, LinkedIn, and other services. The annualized run rate of $218 billion proves just how vital these revenues are to Microsoft. Lots of time was spent talking about Microsoft 365 Copilot, which now has “over 20 million” paid seats. Sounds good, and it’s up five million from the last quarter, but Copilot still has a long road to travel to profitability.
Microsoft Cloud revenues hit $22.1 billion in Microsoft’s FY22 Q2 results announced January 25. Office 365 user numbers grew 16% year over year, but there’s no detail given about active users. Teams reached 270 million users, but we don’t know what segments these users fall into. We do know that Microsoft Viva has 1,000 paying customers, which could be deemed a disappointing outcome for a much-hyped solution.
