For the longest time, Microsoft lumped its cloud business unit Azure together with other businesses like GitHub, Security Copilot and healthcare cloud revenue. That made it hard for investors to know how fast Azure was really growing.
Not anymore. Microsoft has finally decided to report Azure separately. Revenue for the June quarter was up 42% YoY, from US$20.7b to US$29.4b. FY2026 Azure revenue came in at US$101.9b, up 40% from US$72.6b.
Quarterly Azure revenue accelerated from US$22.4b to $24.1b to $26.0b to $29.4b through FY26. Azure isn’t merely large, growth actually accelerated into Q4 despite the increasingly bigger base.
Broadcom is super plugged into the AI value chain. It doesn’t just produce AI chips for companies like Google, it also makes the networking chips needed to move huge volumes of data fast enough for the AI era.
Its overall revenue rose 86% to $29.6b, but AI semiconductor revenue exploded 221% to $16.7b. Hock Tan, President and CEO of Broadcom, said, “In Q4 the momentum continues, and we expect AI semiconductor revenue to accelerate to $21.7 billion, up 236% year over year.”
But in FY28, Broadcom isn’t expecting 200% growth anymore in AI semiconductor revenue. Revenue is projected to hit $230b, up from an estimated $115b in FY27. Still, that’s 100% growth.
The stock still fell, though. Expectations were even higher. Broadcom guided Q4 revenue to $34.8b, but LSEG consensus was about $35.03b, while some other data sets had expectations as high as $35.4b. This is a case where the market appears to have already priced in a lot of the projected growth. That’s why, as I said earlier, results need to be impressive just to justify current stock prices rather than to produce upside, unless a company smashes even the loftiest expectations, like Dell did.
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