Microsoft Contract Backlog Ex-OpenAI Jumps 25%, Cloud Revenue Tops $214B
Microsoft’s Q4 contract backlog rose 25% excluding OpenAI, and full-year cloud revenue exceeded $214 billion with nearly 90% coming from customers outside of frontier model companies, the CFO said on an earnings call.
During the earnings conference call, Microsoft’s CFO highlighted that the company’s contract backlog in the fourth quarter increased by 25% when OpenAI-related commitments are excluded. The figure points to robust underlying demand across the enterprise client base.
For the full fiscal year, cloud revenue surpassed $214 billion, a milestone for the Azure and commercial cloud business. Nearly 90% of that cloud revenue originated from customers who are not frontier model companies, underscoring the broad, diversified adoption of Microsoft’s cloud services beyond large AI labs.
The comments signal a healthy commercial pipeline and a growing cloud business that is not solely reliant on a handful of AI-heavy clients.
Source: First Squawk