Microsoft reported that Azure revenue rose 43% in its fiscal fourth quarter, exceeding Wall Street’s 39.98% forecast. The results suggest that easing capacity constraints and growing enterprise AI adoption are beginning to generate returns on the company’s infrastructure investments.

CEO Satya Nadella said Azure’s annual revenue surpassed $100 billion for the first time, while Microsoft 365 Copilot exceeded 30 million paid seats. Microsoft shares rose more than 8% at one point in after-hours trading.

The strong results helped ease concerns about rising data-center spending. They followed an 82% increase in quarterly revenue at Google Cloud, highlighting accelerating demand for enterprise AI services.