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

No business is a majority here. Azure + cloud services — AI cloud is 27% of revenue, ahead of Enterprise & Business Software at 24% — placement rule 2 puts the primary with the largest business, so Hyperscalers & Cloud Platforms. The rest is tagged separately: Enterprise & Business Software at 24%; Data & Infrastructure Software at 18%; Consumer AI & Device Platforms at 12%.

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

Reported segments

• Intelligent Cloud (Azure + server) — 45% of revenue
• Productivity & Business Processes — 30% of revenue
• More Personal Computing (Windows/Xbox/Search) — 25% of revenue

Most diversified hyperscaler. Primary B6 (Azure ~27%, AI cloud core). Enterprise software (B5) tag = M365/Copilot/Dynamics. Consumer (B6) tag = Windows/Surface. AI/Copilot revenue is cross-cutting across all three segments ($13B+ AI run-rate, embedded).

How the 26% is built

• Intelligent Cloud (Azure + server) — 45% of revenue × 40% AI-driven (estimate). Estimate, held. Azure grew 43% in Q4 (sixth straight quarter of acceleration) and is guided to ~45% CC, with AI services the largest single contributor to that growth — but Microsoft did not re-disclose an Azure AI revenue share this quarter, and management noted ~90% of Microsoft Cloud revenue comes from customers…
• Productivity & Business Processes — 30% of revenue × 18% AI-driven (estimate). Estimate. Raised from 15 on disclosed seat counts: M365 Copilot passed 30M paid seats in Q4 FY2026, up from 20M in April, and GitHub Copilot passed 50M users — a 50% step-up in the AI attach inside this segment in a single quarter
• More Personal Computing (Windows/Xbox/Search) — 25% of revenue × 10% AI-driven (estimate). Estimate, unchanged. Copilot in Windows and AI-driven Search/advertising remain a modest slice; nothing in Q4 FY2026 quantified it

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

• Constellation Energy (CEG) — MSFT is supplied by: 20-yr 835MW nuclear PPA (Three Mile Island / Crane restart)
• Broadcom (AVGO) — MSFT is supplied by: VMware Cloud Foundation powering Azure VMware Solution (license-portability model since Oct 2025)
• NVIDIA (NVDA) — MSFT is supplied by: GPUs for Azure AI
• Arista Networks (ANET) — MSFT is supplied by: largest customer: Azure datacenter switching (~20-26% of Arista revenue per 10-K)
• Cisco Systems (CSCO) — MSFT is supplied by: Silicon One/8000 switching into hyperscale (SONiC, Azure-endorsed) + enterprise networking incumbency
• Ciena (CIEN) — MSFT is supplied by: coherent optical / DCI for cloud AI networks (direct cloud revenue ~46% of sales, two unnamed 10%+ cloud customers)
• NetApp (NTAP) — MSFT is supplied by: data storage/management integrated with Azure (first-party service)
• Everpure (fmr Pure Storage) (P) — MSFT is supplied by: Azure Native Pure Storage Cloud - jointly managed block storage service on Azure (GA 2025)
• Datadog (DDOG) — MSFT supplies: Azure Native Datadog Service partnership: Azure hosts/monitors Datadog workloads and is a first-class monitored target
• IBM (IBM) — MSFT is supplied by: hybrid-cloud (Red Hat OpenShift) runs across Azure
• Advanced Micro Devices (AMD) — MSFT is supplied by: Azure runs production Copilot + models on Instinct MI300X
• Intel (INTC) — MSFT is supplied by: custom Xeon 6 server CPUs powering Azure VM families (Dv7/Ev7)
• Equinix (EQIX) — MSFT is supplied by: colocation + network edge hosting Azure ExpressRoute on-ramps
• Digital Realty Trust (DLR) — MSFT is supplied by: hyperscale data-center capacity leased to Azure

Others in Hyperscalers & Cloud Platforms

• Alphabet (GOOGL)
• Amazon (AMZN)
• Meta Platforms (META)
• CoreWeave (CRWV)
• Nebius Group (NBIS)

All 174 companies · What moved this quarter · How the map is built