MSFT · 10-Q · 2026Q1 · Full report

Product Launch and Transition

MICROSOFT CORP · 2026-04-29 · Importance 56 · Surprise 58

Microsoft 365 Copilot and Microsoft 365 E5 are cited as drivers of higher revenue per user in Microsoft 365 Commercial, contributing to 19% growth in Microsoft 365 Commercial cloud revenues. The company notes investments in AI infrastructure to support Microsoft 365 Copilot seat and usage growth, which are reflected in higher cost of revenue. Microsoft also reports growth in Office 2024 transactional purchases contributing to Microsoft 365 Commercial products revenue. Copilot-related advertising and product rollouts are increasing sales & marketing and R&D spending while driving seat and per-user monetization.

Key facts

• We use a single amount to estimate SSP for items that are not sold separately, including on-premises licenses sold with SA or software updates provided at no additional charge. source
• We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. source