Microsoft's commercial remaining performance obligations, its contracted backlog, rose 84% to $678 billion in fiscal Q4 2026, up from $392 billion three quarters earlier. Amy Hood said all sequential growth came from customers outside frontier model companies, and about 30% of the backlog converts to revenue within 12 months; some analysts believe it could reach $1 trillion. Azure topped $100 billion in full-year revenue and grew 43% in the fourth quarter, and Microsoft 365 Copilot passed 30 million paid seats. The main risk the article flags is spending: fiscal 2026 capex reached $115.95 billion, and guidance put fiscal 2027 capex near $175 billion, while excluding OpenAI, RPO grew only 25%. The author notes that about two-thirds of capex goes to short-lived CPUs and GPUs, which management can slow quickly.
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MSFT
▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/27/2026 | 531.33 |
| Change that session | -0.24% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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