Microsoft (MSFT)

Hyperscaler (Azure) + enterprise software (Office/Windows) + the OpenAI partnership — the most complete AI-platform company

AI exposure 26% — derived from reported segment revenue, not asserted.

Where it sits

AI Platforms → Hyperscalers & Cloud Platforms · figures rebased to FQ4 FY2026, reported 2026-07-29

Azure and other cloud services are about 31.9% of revenue — roughly $105.8B — and Microsoft's largest single business, so placement rule 2 puts the primary with the hyperscalers. Microsoft 365 Commercial at 30.7% plus Dynamics at 2.7% make Enterprise & Business Software a secondary at 33.4%, close behind. Server products, the on-premises licences growing 1%, are 7.1%, and Windows and Devices plus M365 Consumer are 7.9% in Consumer AI & Device Platforms. LinkedIn, Xbox, search advertising and enterprise services — 19.7% together — are off-map by kind. Rebased 2026-09 to the FY2026 10-K: the segment weights were a year stale and the Azure and server-products lines were 27% and 18%.

Also tagged: secondary in Software Stack → Enterprise & Business Software; emerging in AI Platforms → Consumer AI & Device Platforms; emerging in Software Stack → Data & Infrastructure Software.

Reported segments

Rebuilt from the FY2026 10-K (year ended June 30, 2026, $331,839M). The Atlas had the three segments at 45/30/25 against an actual Intelligent Cloud 41.5% ($137,791M), Productivity and Business Processes 42.2% ($139,996M) and More Personal Computing 16.3% ($54,052M) — Productivity understated by 12 points and More Personal Computing overstated by 9, on a structure whose source field still read FY2025. The businesses inside each are now Microsoft's own disclosed product-and-service table, which reconciles to the segment totals exactly. Azure is the one derived line: Microsoft reports Server…

How the 26% is built

Investment read

Moat. Azure at hyperscale plus M365/Windows/Teams lock-in, with AI monetizing inside an existing seat base rather than being won deal by deal — M365 Copilot passed 30M paid seats (from 20M in April 2026) and commercial RPO reached $678B, +84% YoY. The OpenAI relationship is now an equity stake and a large workload rather than an exclusive dependency: management disclosed that ~90% of Microsoft Cloud revenue comes from customers other than frontier-AI labs.

Bottleneck / pricing power. Strong pricing power — enterprise lock-in lets AI features be sold into the installed base, and Azure grew 43% in Q4 FY2026 against a capacity constraint (silicon and power delivery) rather than a demand one, with Q1 FY2027 guided to ~45% constant currency.

Role in the AI stack. The hyperscaler + enterprise-AI-distribution layer (Azure + Copilot).

Connected companies

Others in Hyperscalers & Cloud Platforms

All 176 companies · What moved this quarter · How the map is built