Microsoft Cloud Revenue Surpasses 63 Billion Dollars with 30 Percent Growth as Foundry Triples and Agent 365 Passes 50 Million Agents
Just wrapped our earnings call. It was a fast start to our fiscal year. Microsoft Cloud revenue surpassed $63B, with growth accelerating to 30% YoY. Lots of innovation as we build the new tech stack for the agentic wave. A few highlights:
Context
Microsoft's fiscal first quarter results show enterprise AI moving from chat seats to governed multi model agent infrastructure, with Foundry revenue more than tripling year over year and over 50 million agents running inside Agent 365.
Microsoft reported its fiscal year 2027 first quarter earnings on October 28, 2026, on the same day it unveiled GitHub Copilot Fusion and unified Copilot experiences at GitHub Universe.
Deep dive
Microsoft Chairman and CEO Satya Nadella shared highlights from the company's fiscal 2027 first quarter earnings call, reporting that Microsoft Cloud quarterly revenue surpassed 63 billion dollars as year over year growth accelerated to 30 percent. Nadella emphasized that growth across Azure spanned both core cloud services and AI infrastructure across enterprise and small and medium business customers.
In a five part thread summarizing the call, Nadella detailed rapid adoption across Microsoft's application and developer stack. Following the unification of Chat, Cowork, Autopilot, and Code inside Microsoft Copilot, daily Copilot users grew nearly 50 percent quarter over quarter and more than fivefold year over year, while the number of enterprise customers with more than 50,000 Copilot seats increased eightfold year over year. Underneath those first party products, Microsoft Foundry revenue more than tripled year over year, customers building with multiple models grew fivefold, and revenue from open source models on Foundry increased tenfold year over year.
Nadella also highlighted enterprise context and agent governance metrics. Nearly 60,000 customers now access enterprise context across Microsoft 365, Foundry, and Fabric through Microsoft IQ, up 25 percent quarter over quarter. More than 50 million agents are now registered in Agent 365, up 30 percent quarter over quarter, with third party coding agents including OpenAI Codex, Anthropic Claude Code, and Meta Muse adopting Windows and Agent 365 on device boundaries via MXC alongside Microsoft's Perception containment layer.
What to expect next
As enterprises deploy tens of millions of autonomous agents across cloud infrastructure and local Windows devices, Microsoft is positioning Foundry, Microsoft IQ, and Agent 365 as a unified, model agnostic control plane. How effectively Perception and MXC secure third party coding and productivity agents such as OpenAI Codex, Anthropic Claude Code, and Meta Muse will shape enterprise agent governance standards over the coming year.