Microsoft Azure tops $100B in annual revenue as record AI spending cuts into cash flow

Microsoft Azure achieved over $100 billion in annual revenue, with quarterly growth reaching 43%, exceeding forecasts. This success followed a record $41 billion in capital spending, which caused free cash flow to decrease by 23%. While Microsoft converted AI investments into cloud revenue, Meta saw its revenue rise 28% to $60.8bn, yet profit fell 14% to $15.8bn. Consequently, Microsoft shares rose after hours, whereas Meta shares dropped approximately 5% following their respective reports.