Microsoft Pairs $37 Billion AI Revenue with Plans for a Unified Copilot App

Microsoft’s quarterly results have handed investors something they have been craving: a tangible revenue figure for generative artificial intelligence. The company disclosed an annualised run rate of $37 billion for its AI business, a 123 per cent surge from a year earlier. The number shifted the conversation from how much Microsoft is spending on data centres and chips to how much it is earning from the technology.

The market’s reaction was swift. Shares jumped 5.28 per cent on Friday to close at €385.80, with nearly 77 million shares changing hands — roughly double the three-month average. The rally erased some of the stock’s recent weakness, trimming its year-to-date decline. Yet the recovery has not reached the 200-day moving average, which sits at €393 and has proven a stubborn resistance level. The stock remains 17 per cent below its 52-week high of €467.

Underpinning the revenue milestone is Microsoft’s broader cloud ecosystem. Azure expanded 40 per cent in the third quarter, while overall Microsoft Cloud revenue hit $54.5 billion. The commercial backlog swelled to $627 billion. Diluted earnings per share climbed 23 per cent to $4.27 on total revenue of $82.9 billion, an 18 per cent increase. Operating profit rose 20 per cent to $38.4 billion.

Should investors sell immediately? Or is it worth buying Microsoft?

But even as these figures demonstrate the scale of Microsoft’s AI push, the company faces a different challenge: making its proliferating Copilot products simpler for customers to adopt. Fortune reported on 29 May that Microsoft is developing a "super app" that would bundle several Copilot services — including GitHub Copilot, Copilot Chat, Copilot Cowork and an internal agent workflow tool — into a single interface. The project is led by Jacob Andreou, the recently appointed head of Copilot, who is tasked with stitching together consumer and enterprise offerings. A launch is planned for late summer, though details may be hinted at during the Build developer conference on 2-3 June in San Francisco. The plans are not yet final.

The need for consolidation is underscored by usage data. Microsoft 365 Copilot now counts more than 20 million paid user licences, with additional licences jumping 250 per cent year over year. The number of customers with more than 50,000 licences has quadrupled. Copilot queries per user rose nearly 20 per cent quarter on quarter, and weekly interaction levels have reached those of Outlook. Nearly 140,000 organisations use GitHub Copilot, and enterprise subscriptions have almost tripled. Yet the proliferation of separate tools has created an adoption bottleneck that a unified app could address.

Technically, the stock still has work to do. It currently trades 11.6 per cent above its 50-day average — a sign of short-term momentum — but remains 1.76 per cent below the 200-day line. The relative strength index of 41 suggests neither overbought nor oversold conditions, leaving room for further gains if positive catalysts emerge. The week-on-week gain stands at 6.9 per cent.

The Build conference is shaping up as the next inflection point. Reports suggest Microsoft may unveil its own AI models, including a specialised coding model for GitHub Copilot. While the super app is not expected to debut there, any concrete details about product bundling could give the rally a tangible anchor. Without them, Friday’s jump may remain a vote of confidence in better monetisation rather than a structural breakout.

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