Microsoft

Microsoft reported revenue of $90.0 billion for the quarter ended 30 June 2026, up 18%, with operating income of $40.6 billion. Azure passed $100 billion of annual revenue for the first time, growing 41% over the year and 43% in the quarter. Full-year revenue was more than $331 billion.

Microsoft continues to provide the Israeli Ministry of Defense with 'software, professional services, Azure cloud services, and Azure AI services', including language translation, and works with the Israeli government to protect its national cyberspace. A footnote discloses limited emergency support given to that government in the weeks after 7 October 2023 to help rescue hostages. Microsoft lists five governance changes it will make, and does not publish the findings of the Covington & Burling investigation.

Microsoft workers and supporters disrupted the company's flagship developer conference on 2 and 3 June 2026, with banners reading 'Microsoft powers genocide' and an aircraft circling the venue. No Azure for Apartheid has run since 2024 and continues to demand that Microsoft end all contracts with the Israeli military and government.

Alon Haimovich left as country general manager of Microsoft Israel on 31 May 2026 after four years, with managers from the local governance division. The investigation examined whether Microsoft Israel had been sufficiently transparent with headquarters about how the defence ministry was actually using Microsoft systems, and headquarters was concerned that Unit 8200 might not be an isolated case, Globes reported. The Israeli defence ministry wants to renew at the end of 2026 at a smaller scale, its computing units having moved large parts of their cloud to Amazon and Google.

Azure maintains the Israeli military's 'Rolling Stone' system, which manages the Palestinian population registry and monitors movement through checkpoints in the West Bank and Gaza, and hosts the Israeli Civil Administration's al-Munaseq permit application, which requires Palestinian applicants to surrender device identifiers, location, camera and file access, the Israeli research centre Who Profits records. The same source records Microsoft giving free software to Ariel University in the settlement of Ariel, working with the education department of the settlement of Ma'ale Adumim, and holding cloud and licensing contracts with the Israel Police and the Israel Prison Service.

Microsoft is a priority target of the Palestinian BDS National Committee, the coalition that leads the boycott, divestment and sanctions movement. Its ask is targeted rather than blanket: pressure 'wherever possible when reasonable alternatives exist', including boycotting Microsoft's Xbox and gaming, cutting institutional contracts and divesting from the company. More than 223,000 letters have been sent to Microsoft executives and more than 2,100 people have signed the workers' petition.

More than 26% of votes cast at Microsoft's annual meeting of 5 December 2025 backed Proposal 9, which asked the company to report on whether its human rights due diligence can tell when military customers misuse its AI and cloud services. The board had recommended a vote against. The Religious of the Sacred Heart of Mary filed it with around sixty co-filers holding more than $80 million of stock; the proxy adviser Institutional Shareholder Services supported it and Glass Lewis opposed. No shareholder proposal carried.

Microsoft unlawfully processed Palestinians' personal data in the European Union, enabling Unit 8200 to intercept and store their phone calls at mass scale, the Irish Council for Civil Liberties and Ekō allege in a complaint filed for Palestinian residents of Gaza and the occupied West Bank and for EU citizens communicating with them. They further allege that Azure hosts critical components of al-Munaseq, the system through which Israel controls Palestinian movement, and that Microsoft then facilitated the transfer of the intercepted calls out of EU servers to Israel. Ireland is Microsoft's lead data protection regulator in the EU.

Microsoft's provision of cloud technology, artificial intelligence and data processing to the Israeli military, intelligence and government exposes it to 'civil and criminal liability for aiding and abetting' Israel's commission of atrocity crimes, seven legal organisations warned Satya Nadella and Brad Smith. Processing intercepted Palestinian communications in Dutch and Irish data centres also breached the General Data Protection Regulation, they say, for which fines reach 4% of worldwide annual turnover. They ask Microsoft to terminate the services concerned, commission an independent investigation and provide restitution.

Israel's Project Nimbus contract bars the winning suppliers from restricting which arms of the Israeli government use their services, or from suspending access even for breaches of their own terms, in a finalised version of the contract among leaked Israeli finance ministry documents reported by the Guardian, +972 Magazine and Local Call. Microsoft bid for that tender, refused some of Israel's demands and lost it.

7amleh, the Palestinian digital rights organisation formally called the Arab Center for the Advancement of Social Media, asked Microsoft with five other groups to say what further steps will suspend business with Israeli military entities linked to abuses, to publish the full findings of its review including which entities were examined, to disclose any restrictions applied to AI services used by the Israeli military, and to determine how to provide 'effective remedy, including reparations, to Palestinians affected'.

Microsoft had taken an important first step but must investigate every contract with Israeli authorities, Human Rights Watch said, having itself found that those authorities carried out ethnic cleansing, war crimes, crimes against humanity including extermination, apartheid and persecution, and acts of genocide.

Microsoft withdrew services from one unit within the Israeli Ministry of Defense, and a Microsoft spokesperson said the vast majority of the company's contract with the Israeli military remained intact, in Al Jazeera's report of 26 September 2025.

Microsoft 'ceased and disabled specified IMOD subscriptions and their services' on 25 September 2025, including specific cloud storage and AI services, after its review found evidence supporting elements of the Guardian's reporting. Brad Smith set out two principles: Microsoft does not 'provide technology to facilitate mass surveillance of civilians', and it accessed no Ministry content. The decision does not affect Microsoft's cybersecurity work for Israel and other countries in the Middle East.

Amnesty International welcomed the decision as a moment for corporate reckoning and called on Microsoft to investigate all its contracts, sales and transfers of surveillance, artificial intelligence and related equipment to Israel, and to disclose what it finds.

The UN Independent International Commission of Inquiry on the occupied Palestinian territory and Israel concluded on reasonable grounds that Israeli authorities and Israeli security forces 'have committed and are continuing to commit' acts of genocide against Palestinians in Gaza with genocidal intent, and that Israel bears responsibility for failing to prevent genocide, for committing it and for failing to punish it. The analysis covers 7 October 2023 to 31 July 2025.

Microsoft dismissed Anna Hattle and Riki Fameli after a sit-in at Brad Smith's office in August 2025, and Nisreen Jaradat and Julius Shan over related protests. Police arrested eighteen people at worker-led protests at its Redmond headquarters that month. Microsoft had already dismissed Abdo Mohamed and Hossam Nasr in October 2024 for holding a vigil for Palestinians killed in Gaza, and the software engineer Joe Lopez in May 2025 after he interrupted Satya Nadella's Build keynote.

Unit 8200 held its archive of intercepted Palestinian calls in a customised Azure environment, and Microsoft said it had begun an urgent external review, in Al Jazeera's coverage of the joint investigation the day after publication.

Israeli military intelligence Unit 8200 stored recordings of millions of Palestinian phone calls made daily in Gaza and the occupied West Bank in a customised, segregated area of Azure, operational from 2022 and holding around 11,500 terabytes by July 2025, in leaked Microsoft documents reported by +972 Magazine, Local Call and the Guardian. Sources said the archive was used to shape operations, to prepare airstrikes in Gaza and to support arrests in the West Bank. Based on eleven sources inside Israeli military intelligence and the company.

Microsoft, Alphabet and Amazon 'grant Israel virtually government-wide access to their cloud and artificial intelligence technologies', and stepped in with critical infrastructure in October 2023 when the Israeli internal military cloud overloaded. Servers located in Israel ensure data sovereignty and 'a shield from accountability', under favourable contracts offering minimal restrictions or oversight, she found. The report names Microsoft, and records an Israeli colonel describing cloud technology in July 2024 as a weapon in every sense of the word.

Microsoft said on 15 May 2025 that an internal review and an external firm had 'found no evidence to date' that its Azure and AI technologies were used to target or harm people in Gaza. The statement sets out what Microsoft sells the Israeli Ministry of Defense, and concedes that it has no visibility into how customers use software on their own premises or on government clouds run by other providers.

Azure is the Israeli military's second-largest cloud infrastructure globally, and its consumption of Azure AI services was 64 times higher by March 2024 than before the assault on Gaza, AFSC Investigate records, the corporate research project of the American Friends Service Committee. The same register names Unit 8200, Unit 81 and Matspen among the units using Microsoft services, and records Azure powering the Israel Police's operational systems and the al-Munaseq permit application.

Dozens of Israeli army units, including air, ground and naval forces and Unit 8200, bought Azure services across more than 600 subscriptions identified by unit code names including 'Mamram', with the military held internally as an S500 account, the designation for Microsoft's highest-priority customers, according to leaked documents reported by +972 Magazine, Local Call and the Guardian. The same documents record Microsoft giving the military extensive access to OpenAI's GPT-4.

The International Court of Justice found Israel's continued presence in the occupied Palestinian territory unlawful, held settlements and their associated economic activity contrary to international law, and set out the obligations of other states in relation to dealings arising from the occupation.

Microsoft's venture arm M12 joined a $74 million funding round in the Israeli facial recognition firm AnyVision in June 2019. After reporting that the technology was used to surveil Palestinians in the occupied West Bank, Microsoft commissioned an audit from the former US Attorney General Eric Holder at Covington & Burling, the firm that later ran the 2025 investigation. The audit confirmed the technology was used to monitor checkpoints between the occupied West Bank and Israel, but concluded it did not power a mass surveillance programme there. Microsoft divested in March 2020.