MSFT | Weekly | Haru Insights

Microsoft’s Azure revenue surpassed $100 billion annually with 43% year-over-year growth, fueled by enterprise AI adoption and a $678 billion commercial remaining performance obligation (RPO) backlog—cementing its position as the anchor of global AI infrastructure.
The formal acceptance of Horizon 1 (50MW) by IREN Limited, alongside Microsoft’s $116 billion AI capex plan for FY2026 and its $250 billion OpenAI commitment through 2032, marks the largest and most operationally validated AI infrastructure deal in history, affirming Azure’s central role in the next wave of technological expansion.

Microsoft’s AI flywheel is now unstoppable: embedding Copilot across its ecosystem has turned productivity software into a monetizable intelligence layer, with 30 million paid seats and 60% QoQ usage growth—proof of deep, sticky adoption.
The $20 billion 20-year power deal with Constellation Energy to restart Three Mile Island is not just green—it’s a strategic fortress: securing 24/7 clean energy for data centers, future-proofing Azure against energy scarcity and cementing long-term operational resilience.
Microsoft’s $250 billion OpenAI commitment is no longer a bet—it’s a reality: the partnership is now infrastructure-backed, with Meta relying on Azure capacity, validating Microsoft’s ecosystem as the de facto platform for enterprise AI deployment.
Despite a 23% drop in free cash flow, the $116 billion capex is a masterstroke of long-term dominance—not reckless spending—revealing Microsoft’s willingness to sacrifice short-term profits for irreversible market control and technological supremacy.
Bill Ackman’s 9.8% stake increase and Pershing Square’s full confidence reflect elite conviction: investors see Microsoft as undervalued infrastructure with a hidden $200 billion OpenAI asset and entrenched moats in M365 and Azure.

Microsoft Corporation (MSFT)[Tv]