Microsoft today reported its financial results for FY26 Q2 (quarter ended December 31, 2025). Microsoft beat expectations on revenue and earnings, but the stock still fell over 6% in after-hours trading, as investors focused on record AI infrastructure spending and Azure growth expectations. Microsoft reported $81.3 billion in revenue (up 17% YoY) and $38.3 billion in operating income (up 21% YoY).
Below are the most notable figures Microsoft shared across its businesses and products during the earnings materials and conference call.
Commercial backlog and AI infrastructure:
- Commercial RPO hit $625 billion (up 110% YoY), and Microsoft disclosed that OpenAI represents ~45% of that balance.
- Microsoft’s capital expenditures increased significantly to $37.5 billion (up 66% YoY), a record quarter. Nearly two-thirds of that went to short-lived assets (primarily GPUs and CPUs).
Microsoft 365 Copilot and Copilot adoption:
- Microsoft now has 15 million paid Microsoft 365 Copilot seats.
- Average Copilot conversations per user doubled YoY.
- Daily active users of the Copilot app increased 3x YoY.
- Daily active users of Microsoft 365 Copilot increased 10x YoY.
- Microsoft 365 Copilot seat adds were up 160% YoY.
- Microsoft 365 Copilot customers with more than 35,000 seats tripled YoY. In fact, Publicis alone purchased over 95,000 seats.
Developer services:
- GitHub Copilot Pro+ subscriptions (individual developers) increased 77% quarter-over-quarter.
- Microsoft reported 4.7 million paid Copilot subscribers, up 75% YoY.
Fabric, Foundry, and others:
- Microsoft Fabric reached over $2 billion annual revenue run rate, with over 31,000 customers, and revenue up 60% YoY.
- Microsoft said over 1,500 customers have used both Anthropic and OpenAI models on Foundry.
- Customers spending $1M+ per quarter on Foundry grew nearly 80%.
- 250+ customers are on track to process over 1 trillion tokens on Foundry this year.
- Microsoft claimed over 80% of the Fortune 500 have active agents built using its low-code/no-code tools (Copilot Studio and Agent Builder).
Security:
- Microsoft said it now has 1.6 million security customers, including over 1 million using 4+ security workloads.
- 24 billion Copilot interactions were audited by Purview this quarter (up 9x YoY).
Healthcare:
- Microsoft said Dragon Copilot is helping over 100,000 medical providers.
- Microsoft also said it helped document 21 million patient encounters this quarter, up 3x YoY.
Windows:
- Microsoft claimed it hit a milestone of 1 billion Windows 11 users, up over 45% YoY.
Gaming:
- Microsoft saw record PC players and paid streaming hours on Xbox.
While Copilot adoption and Windows 11 usage have reached significant milestones, investor concerns regarding high AI-related capital expenditures led to a 6% drop in stock price.