Microsoft 365 Statistics 2026: Seats, Revenue and Threat Data

Microsoft 365 Commercial products and cloud services generated $101,997 million in revenue in the fiscal year ended June 30, 2026, up from $87,767 million a year earlier and $76,969 million the year before that. Those Microsoft 365 statistics sit against a seat base that grew far more slowly. Paid Microsoft 365 commercial seats grew 6% year over year to over 450 million, while Microsoft 365 Commercial products and cloud services revenue increased $14.2 billion or 16%.

Microsoft is adding far more revenue than it is adding people. Sections below track that divergence across seats, Copilot attach, consumer subscriptions, and segment profitability. Security telemetry for the same estate follows.

Key Takeaways

• Microsoft 365 Commercial revenue grew 16% while paid commercial seats grew only 6%, so price and product mix now carry almost all of the growth.
• The consumer half repeats the pattern, with Microsoft 365 Consumer subscriber growth of 7% against Consumer cloud revenue growth of 28%.
• Microsoft 365 Copilot sits at roughly one paid seat for every 15 paid commercial seats.
• Commercial cloud revenue growth peaked at 19% in the quarter ended March 31, 2026 before easing to 14% on a reported basis in the June quarter.
• Microsoft 365 across both halves produced $111.2 billion in fiscal 2026 revenue, roughly a third of the company.
• Microsoft held a 45.6% share of the worldwide unified communications and collaboration market in 2024, up 2.4 percentage points from 2023.

Editor’s Choice

• Microsoft 365 Commercial revenue: $101,997 million in fiscal 2026.
• Paid commercial seats: over 450 million.
• Microsoft 365 Copilot paid seats: over 30 million.
• Microsoft 365 Consumer revenue: $9,175 million in fiscal 2026.
• Segment operating income: $83,879 million for the twelve months ended June 30, 2026.
• Email phishing threats detected: approximately 7.6 billion in the second quarter of 2026.

Microsoft 365 Statistics: Revenue by Product Line

• Microsoft 365 Commercial revenue reached $101,997 million in fiscal 2026 in the company’s annual report to the SEC, the largest single product line at Microsoft after server products.
• Microsoft 365 Consumer revenue reached $9,175 million, making the consumer half roughly one-eleventh the size of the commercial half.
• Consumer revenue rose $1.8 billion or 24% year over year, a faster rate than the commercial side.
• Total Microsoft revenue was $331,839 million in fiscal 2026 against $281,724 million in fiscal 2025.
• Microsoft counts Exchange, SharePoint, Microsoft Teams, Enterprise Mobility + Security, Microsoft 365 Security and Compliance, and Microsoft 365 Copilot inside Microsoft 365 Commercial cloud, a far broader definition than the Office apps alone.
• Microsoft 365 Commercial products, a separate sub-line, comprises Windows Commercial on-premises and Office licensed on-premises.

Source: Microsoft Corporation Form 10-K, fiscal year 2026

About This Data

Every figure here is compiled from 20 captured sources: 19 primary filings, investor-relations releases, earnings-call transcripts, and Microsoft security telemetry posts, plus one industry tracker release. The compilation window runs from April 2025 to September 2026. A source is qualified only if it was the originating publisher of the figure. Figures are updated when Microsoft publishes a new quarter or annual report.

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Microsoft 365 Commercial Cloud Revenue Growth by Quarter

• Commercial cloud revenue grew 17% in the quarter ended September 30, 2025.
• Growth held at 17% in the quarter ended December 31, 2025.
• Growth reached 19% in the quarter ended March 31, 2026, the high point of the fiscal year.
• Reported growth fell to 14% in the June 2026 quarter, or 16% when adjusted for a prior-year comparable that benefited from 2 points of in-period revenue recognition.
• Segment revenue climbed from $33.0 billion in the September quarter to $37.8 billion in the June quarter.

Recent Developments

• September 2026: Microsoft reported that Defender missed 221 high-severity threats per 1,000 protected users in the May to July 2026 benchmark window.
• July 2026: Microsoft closed fiscal 2026 with June-quarter Microsoft Cloud revenue of $59.3 billion, up 27%, and commercial remaining performance obligation up 84% to $678 billion.
• July 2026: Microsoft Threat Intelligence reported approximately 7.6 billion email-based phishing threats across the second quarter.
• July 2026: Microsoft disclosed that customers with more than 50,000 Copilot seats had increased more than 7x year over year.
• April 2026: Microsoft 365 Copilot seat adds increased 250% year over year, the fastest growth since launch.
• January 2026: Microsoft disclosed that paid Microsoft 365 commercial seats had reached over 450 million.

Microsoft 365 Paid Commercial Seats

• Paid commercial seats reached over 450 million, growing 6% year over year.
• The same 6% seat growth rate held in the quarter ended March 31, 2026 and again in the quarter ended June 30, 2026.
• Seat expansion was driven by small and medium businesses and frontline worker offerings rather than by large enterprise net-new.
• Revenue per user growth was driven by Microsoft 365 Copilot and Microsoft 365 E5.
• Commercial products revenue grew 13% on Windows Commercial on-premises components and Office 2024 transactional purchasing.

Source: Microsoft Corporation Form 10-K FY2026 and FY26 Q2 earnings call, January 2026

How many people currently use Microsoft 365?

Microsoft does not publish a user count. It publishes a paid seat count, and that figure stood at over 450 million paid commercial seats, up 6% year over year, as of the quarter ended December 31, 2025.

Consumer subscriptions sit on top of that commercial base and are reported only as a growth rate. The distinction matters when comparing suites: a seat is a paid entitlement, not an active user, and Microsoft has never published the second number.

Microsoft 365 Copilot Paid Seat Growth

• Copilot seat adds rose over 160% year over year in the quarter ended December 31, 2025, taking paid Microsoft 365 Copilot seats to 15 million.
• Seats reached over 20 million in the quarter ended March 31, 2026.
• Seats passed 30 million in the quarter ended June 30, 2026, with net seat adds more than doubling quarter over quarter.
• Copilot daily active users increased 10x year over year, with the average number of conversations per user doubling.
• Average weekly engagement is on par with Outlook and Teams, which puts Copilot alongside the Outlook usage figures that define daily habit inside the suite.

Source: Microsoft FY26 Q2, Q3 and Q4 earnings calls, 2026

By the numbers: Microsoft 365 Copilot went from 15 million paid seats in December 2025 to over 30 million by June 2026, while the commercial base it sells into grew 6%. That is roughly one Copilot seat for every 15 paid commercial seats, so attach is still under a tenth of the installed estate.

Broader adoption context sits in the Copilot adoption data tracked across Microsoft’s assistant portfolio.

Microsoft 365 Consumer Subscriptions and Revenue

• Consumer subscriber growth was 7% across fiscal 2026.
• Consumer cloud revenue grew 28% for the full fiscal year, four times the subscriber growth rate.
• Quarterly consumer cloud growth ran 26% in the September 2025 quarter, 29% in December, 33% in March and 24% in June.
• Consumer cloud revenue growth was driven by average revenue per user rather than by volume.

Across the platform statistics pages we maintain, the same shape keeps recurring: user growth slows to single digits while revenue per user does the work. Microsoft 365 now shows it on both sides of the business at once.

Productivity and Business Processes Segment Performance

• Segment revenue reached $139,996 million for the twelve months ended June 30, 2026, against $120,810 million the prior year.
• Segment operating income reached $83,879 million against $69,773 million.
• Quarterly segment revenue was $37,847 million against $33,112 million in the prior-year quarter.
• Segment cost of revenue rose 12% on AI infrastructure investment supporting Microsoft 365 Copilot seat and usage growth.
• Segment operating income rose $14.1 billion or 20%.

Enterprise Copilot Deployment Scale

• Accenture holds over 740,000 Copilot seats, Microsoft’s largest win to date.
• NHS England is rolling out Copilot to 505,000 clinicians and staff, the largest healthcare deployment of its kind.
• EY deployed the E7 suite to 400,000 employees.
• HSBC committed to 200,000 seats.
• Customers with more than 50,000 seats increased more than 7x year over year.
• Time to high usage, meaning monthly active usage above 80% across a customer’s user base, has fallen from months to days.

Source: Microsoft FY26 Q3 and Q4 earnings calls, 2026

Email Threats Detected Across Microsoft 365

• Microsoft detected approximately 7.6 billion email-based phishing threats across the second quarter of 2026.
• Monthly volume declined modestly from 2.7 billion in April to 2.4 billion in June.
• Phishing volume linked to the Tycoon2FA platform fell 92% from pre-disruption averages after Microsoft’s March action.
• Its share of CAPTCHA-gated phishing sites fell from a peak of 76% in December 2025 to 41% in March and 12% by June.
• Its share of QR-code campaigns fell from a peak of 33% in November 2025 to 20% in March and 14% by June.
• Credential phishing remained the dominant objective behind malicious payloads across the quarter.

Source: Microsoft Security Blog, email threat landscape Q2 2026, July 2026

Why it matters: A single disruption operation removed 92% of one platform’s phishing volume, and Microsoft Threat Intelligence noted that no replacement service reached comparable scale during the quarter. Takedowns are usually described as temporary; this one held for a full quarter across both its signature techniques.

The wider trend sits alongside the phishing email volume data tracked across the industry, where the Microsoft estate supplies a disproportionate share of the observable telemetry.

Microsoft Teams as a Non-Email Attack Channel

• Teams-based voice phishing attempts reached nearly ten times the mid-2025 baseline by the end of the second quarter of 2026.
• Teams traffic typically bypasses secure email gateways, so gateway telemetry understates the real volume.
• Threat actors increasingly abused Microsoft Teams during the quarter to deliver social engineering, phishing, and malware payloads.
• Microsoft Teams sits inside the Microsoft 365 Commercial cloud line, which puts the channel in front of over 450 million paid commercial seats.
• Voice phishing volume on the channel climbed across the quarter while email-based phishing threats fell from 2.7 billion in April to 2.4 billion in June.

This is the part of the picture a revenue table cannot show. Consolidation makes Microsoft 365 efficient to buy, and it also makes the estate a single very large surface to defend. The fastest-growing lure channel is now the one that never touches an email filter.

Business Email Compromise Lure Mix

• Payroll update requests declined from roughly 4% of attacks in March to 2.3% by June.
• Gift card requests stayed at no more than roughly 4% of attacks, with no clear directional trend.
• Business email compromise activity largely returned to historical norms after a brief, anomalous surge in April.

Source: Microsoft Security Blog, email threat landscape Q2 2026, July 2026

Microsoft Defender for Office 365 Benchmark Results

• Defender missed 221 high-severity threats per 1,000 protected users in the May 2026 to July 2026 comparison.
• That result was 55.4% fewer missed threats than the next-closest secure email gateway vendor.
• The benchmark measures missed threats rather than total catches, because catch totals reflect differences in threat volume and exposure across vendor environments.
• Integrated cloud email security vendors caught 0.30% malicious email against 0.13% in the prior quarter, with spam catch going up to 0.52% from 0.28%.

What is safer, Google or Microsoft?

Microsoft’s published benchmark does not answer that question. It compares Microsoft Defender against secure email gateway vendors on missed high-severity threats per 1,000 protected users, and Google Workspace is not among the compared solutions. Any safety comparison between the two suites would need an independent test that measures both under identical conditions.

Microsoft’s Share of the Collaboration Market

• Worldwide unified communications and collaboration revenue grew 7.8% year over year to $69.2 billion in 2024.
• Microsoft’s revenue in that market rose 14% year over year to $31.5 billion.
• Microsoft held a 45.6% share, up 2.4 percentage points from 2023.
• Zoom’s revenue grew approximately 1% to $4.3 billion, a 6.2% share after losing 40 basis points.
• Cisco accounted for a 5.3% share on $3.7 billion, down 70 basis points.

Worth noting: IDC measured vendor revenue rather than installed domains, which is why the Microsoft figure of $31.5 billion sits so far above Zoom’s $4.3 billion. Domain-count rankings published elsewhere describe a different quantity entirely and should not be read as a revenue or seat comparison.

The Microsoft Workforce Behind Microsoft 365

• Microsoft employed approximately 223,000 people on a full-time basis as of June 30, 2026.
• The geographic split was 121,000 in the United States and 102,000 internationally.
• By function, 89,000 were in operations and 77,000 in product research and development.
• Sales and marketing accounted for 43,000 and general and administration for 14,000.
• Microsoft Cloud revenue, which includes Microsoft 365 Commercial cloud, reached $214.4 billion in fiscal 2026 against $168.9 billion and $137.7 billion in the two prior years.

A fuller breakdown of that headcount sits in the Microsoft headcount data we track separately.

What are the disadvantages of using Microsoft 365?

Two disadvantages are measurable: concentration and cost trajectory. Concentration shows up directly in the threat telemetry. Microsoft detected approximately 7.6 billion email-based phishing threats in a single quarter, and Teams traffic typically bypasses secure email gateways, which means a second high-volume channel sits outside the tooling most organizations bought to defend the first.

Cost is the other measurable factor. Microsoft attributes revenue per user growth to Microsoft 365 Copilot and Microsoft 365 E5, so the premium mix that drives Microsoft’s reported growth is the same mix that raises a customer’s bill per seat.

Is Microsoft 365 the same as Office 365?

Not quite. Microsoft 365 Commercial cloud comprises Microsoft 365 Commercial, Enterprise Mobility + Security, the cloud portion of Windows Commercial, the per-user portion of Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, and Microsoft 365 Copilot. The older Office licensing sits in a separate sub-line.

Microsoft 365 Commercial products comprise Windows Commercial on-premises and Office licensed on-premises, and Microsoft 365 Consumer products and cloud services include Microsoft 365 Consumer subscriptions, Office licensed on-premises and other consumer services. Office is therefore one component inside a broader bundle rather than a synonym for it.

Scale makes the point too. Across both sub-lines, Microsoft 365 produced $111,172 million of revenue in fiscal 2026, a figure no Office licensing line has ever carried on its own.

Can Microsoft 365 track your activity?

Administrators can, and the tooling ships inside the subscription. Microsoft counts Microsoft 365 Security and Compliance inside the Microsoft 365 Commercial cloud line, alongside Exchange, SharePoint and Teams, so audit, retention and data-loss controls are part of what an organization buys rather than an add-on.

Microsoft itself publishes no per-user activity data. Its disclosures stop at paid seat counts, reported as over 450 million commercial seats growing 6% year over year, with no individual usage telemetry released at any level.

Conclusion

Microsoft 365 crossed $101,997 million in commercial revenue and $9,175 million in consumer revenue in fiscal 2026, on a base of over 450 million paid commercial seats growing 6% a year. The gap between those two rates is the story: over 30 million paid Copilot seats and a premium suite mix are doing work that new seats no longer do. For buyers, that makes renewal pricing the variable to watch rather than headcount.

For security teams, the picture is separate and less comfortable. An estate this size absorbed approximately 7.6 billion email phishing threats in one quarter while its fastest-growing lure channel moved to Teams, where gateway controls do not apply. The wider Microsoft financial picture shows the same concentration from the revenue side.