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Microsoft Copilot 365 growth lifts investor confidence after results
Microsoft said it now has more than 30 million paid Copilot 365 seats and that Azure revenue grew 43% last quarter.
Microsoft’s post-earnings momentum picked up after the company reported better-than-anticipated fourth-quarter results, helping win back some investor confidence that had soured over questions about when its large AI investments would pay off.
In its update, Microsoft said it has more than 30 million paid Microsoft Copilot 365 seats. The company also reported that Azure revenue grew 43% last quarter, and it expects growth to keep accelerating through the first half of fiscal 2027, according to the article.
The piece notes concerns highlighted by Bloomberg that much of Microsoft’s AI growth came from OpenAI, raising questions about revenue concentration in a small set of AI companies. Microsoft’s results nevertheless improved Wall Street confidence in its AI plans, the article says.
Microsoft executive vice president of Copilot Charles Lamanna attributed Copilot’s growth to its integration with existing Microsoft apps, including Teams and Outlook, and to Copilot’s design that lets it use multiple AI models. The article also says Microsoft has nearly doubled year-over-year the number of conversations people have with Copilot, and that Copilot engagement is at a level comparable to Outlook in Teams.
Shares of Microsoft, while underperforming the S&P 500 and some peers over the last 12 months, turned positive year to date after the earnings release, the article says. It also states the stock is up about 25% since the results, outpacing Amazon, Google, Meta, and Oracle over the same period.
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