MSFTMicrosoft Corporation

“it was another record quarter for Microsoft 365 Copilot seat ads which increased 250% year-over-year, representing our fastest growth since launch. Quarter-over-quarter, we continue to see acceleration and now have over 20 million Microsoft 365 Copilot paid seats.”

“Capital expenditures were $31.9 billion, down sequentially due to the normal variability from structure buildouts and the timing of delivery of finance leases. And this quarter, roughly 2/3 of our CapEx was for short-lived assets, primarily GPUs and CPUs.”

“The number of customers with over 50,000 seats quadrupled year-over-year and Accenture now has over 740,000 seats, our largest Copilot win to date. And Bayer, Johnson & Johnson, Mercedes and Roche all committed to 90,000 or more seats.”

“our agentic products in LinkedIn Talent Solutions, which help hirers automate time-consuming tasks like sourcing, screening and drafting messages have already surpassed a $450 million annualized revenue run rate.”

“For calendar year 2026, we expect to invest roughly $190 billion in capital expenditures, which includes approximately $25 billion from the impact of higher component pricing.”

“Cosmos DB alone saw 50% year-over-year revenue growth driven by AI app workloads.”

“Our AI business surpassed $37 billion ARR, up 123%.”

“We now have 35,000 paid Fabric customers, up 60% year-over-year. And all of the amount of data in Fabric, OneLake data lake increased nearly 4x year-over-year. Over 15,000 customers now use both Foundry and Fabric, up 60% year-over-year as enterprises connect agents to real-time operational analytical and unstructured data that Fabric brings together.”

“the number of Security Copilot customers increased 2x year-over-year, our data security triage agents alone handled over 2 million unique alerts this quarter, and we are helping customers secure their AI deployments as well. 35 billion Copilot interactions have been audited by Purview to date, up 7x year-over-year.”

“We have seen a surge in usage of our first-party agents with monthly active usage up 6x year-to-date. Copilot queries per user were up nearly 20% quarter-over-quarter. To put this momentum in perspective, weekly engagement is now at the same level as Outlook, as more and more users make Copilot a habit.”

“we are seeing fast growth of our co-pilot credit consumptive offer, up nearly 2x quarter-over-quarter as customers increasingly extend copilot with custom agents tailered to their workflows.”

“Over 10,000 customers have used more than one model on Foundry, 5,000 used open source models, and the number who have used Anthropic and OpenAI models increased 2x quarter-over-quarter.”

“Our Maia 200 AI accelerator, which offers over 30% improved tokens per dollar compared to the latest silicon in our fleet is now live in our Iowa and Arizona data centers.”

“HSBC uses prebuilt agents with Dynamics 365 to manage customer inquiries across products, markets, regulatory requirements, reducing issue resolution time by over 30%.”

“we delivered a 40% improvement in inference throughput for our most used models across Copilot driven by our software and hardware optimization work.”

“All up, we added another gigawatt of capacity this quarter and remain on track to double our overall footprint in just 2 years.”

“over 300 customers are on track to process over 1 trillion tokens on Foundry this year, accelerating 30% quarter-over-quarter.”

“We have reduced, [ docked the ] life times for new GPUs in our biggest regions by nearly 20% since the beginning of the year.”

“Nearly 140,000 organizations now use Github Copilot and enterprise subscribers have nearly tripled year-over-year.”

“The system of work behind Work IQ alone now spans more than 17 exabytes of data growing 35% year-over-year.”

“Early signals show 67% increase in GPU efficiency with Transcribe-1 and up to 260% increase in Image-2.”

“We're also seeing rapid adoption of GitHub Pilot CLI with usage nearly doubling month-over-month.”

“nearly 60% of our service customers are already purchasing usage-based credits.”

“we expect to remain constrained at least through 2026. Despite these constraints, and the continued need to balance incoming supply. We expect Azure growth to show modest acceleration in the second half of the calendar year compared with the first half.”

“having the revenue share exists through 2030 and the predictability of that is a real positive for us. And then as you put out, that Satya pointed out, the thinking about that as royalty free with the elimination of our rev share to them.”

“Tens of thousands of companies are already managing tens of millions of agents in Agent 365, and we expect this momentum to grow significantly as agents will increasingly need tools for identity governance, security and more.”

“the usage of this is at the same level as Outlook. So this is not -- even to the previous question, are people using it, finding it useful. I mean this is like a daily habit of intense usage.”

“Our Cobalt server CPU is deployed in nearly half of our DC regions running workloads at scale for customers like Databricks, Siemens and Snowflake.”

“we have a frontier model. royalty-free with all the IP rights that we will have access to all the way to 32 and we fully plan to exploit it.”

“Our Fairwater data center in Wisconsin came online earlier this month, 6 weeks ahead of schedule, allowing us to recognize revenue earlier.”

“We continue to increase the pace of future innovation across Microsoft 365 Copilot introducing over 625 updates over the past year, up 50%.”

“Nearly 90% of the Fortune 500 now have active agents built with our low-code, no-code tools.”

“the seat-based pricing is just entitlements to some consumption right. And so that's, I think, the way to think about it, which is there is some base usage rights that get bundled in or packaged in to see it's a convenient way for people to buy some essentially consumption packs that happen to be assigned to see agents. And then beyond a certain level, there's overages go into pure consumption.”

“you're really thinking through as we go through using a model that's historically thought of as a per seat business. And suddenly, if you think about getting worked on and being more productive, it's thinking about being a seat or a worker plus an agent. And when I think about that model, I start to think about it as a license business plus a consumption business”

“Strong customer demand across workloads, customer segments and geographic regions continues to exceed available capacity.”

“We also continue to modernize our fleet with our first-party innovation alongside the latest from NVIDIA and AMD.”