Microsoft Corporation

Operating expenses increased 5% in constant currency and operating margins increased year over year to 47%, ahead of expectations; with strong H1 execution and favorable mix, management now expects FY '26 operating margins to be up slightly — a raise from prior flat guidance.

Microsoft added nearly one gigawatt of total capacity this quarter alone and brought Maya 200 online — 10+ flops FP4 with over 30% improved TCO — and connected Atlanta and Wisconsin Fairwater sites through an AI WAN to build a first-of-kind AI super factory.

Microsoft 365 Copilot seat adds were up over 160% year over year with 15 million paid seats; daily active users increased 10x year over year and customers with over 35,000 seats tripled year over year including Publicis at 95,000 seats.

Commercial bookings increased 23% in constant currency driven by the previously large Azure commitment from OpenAI, the previously announced Anthropic commitment from November, and healthy growth across core annuity sales motions.