Microsoft vs Vercel: Revenue, Profit and Business Model
Microsoft reported $331.8B of revenue in FY2026 and $133.7B of net income. Vercel does not publish annual revenue.
Latest financial snapshot
Financial summary
Microsoft
Microsoft's FY2026 revenue rose 17.8% to $331.8 billion, operating income rose 21% to $155.2 billion, and GAAP net income rose 31% to $133.7 billion. Fourth-quarter revenue was $90.0 billion (up 18%) with net income of $35.8 billion, helped by a $3.2 billion gain on its Anthropic investment. Microsoft Cloud revenue reached $59.3 billion in Q4, up 27%. The main pressure point is capital intensity: AI data center spending has pushed free cash flow growth well below earnings growth.
Vercel
As a private company, Vercel does not file public financial statements, so all revenue figures are press estimates or numbers shared by the company. TechCrunch, citing Forbes, reported in April 2026 that annual recurring revenue rose from about $100 million at the start of 2024 to a run rate of about $340 million by the end of February 2026. A September 2026 report said annualized revenue had reached about $600 million, up 148% year on year and up from $500 million in July. On funding, Vercel raised $102 million in a Series C in June 2021 and $250 million at a $3.25 billion valuation in May 2024. In September 2025 it raised a $300 million Series F at a $9.3 billion post-money valuation, co-led by Accel and GIC, together with a secondary tender offer for existing shareholders.
Revenue and profit by year
Microsoft
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $331.8B | $133.7B | 40.3% | +17.8% | Source |
| FY2025 | $281.7B | $101.8B | 36.1% | +14.9% | Source |
| FY2024 | $245.1B | $88.1B | 36.0% | +15.7% | Source |
| FY2023 | $211.9B | $72.4B | 34.1% | +6.9% | Source |
| FY2022 | $198.3B | $72.7B | 36.7% | +18.0% | Source |
| FY2021 | $168.1B | $61.3B | 36.5% | +17.5% | Source |
| FY2020 | $143B | $44.3B | 31.0% | +13.6% | Source |
| FY2019 | $125.8B | $39.2B | 31.2% | +14.0% | Source |
| FY2018 | $110.4B | $16.6B | 15.0% | +14.3% | Source |
| FY2017 | $96.6B | $25.5B | 26.4% | — | Source |
Vercel
Vercel does not publish annual revenue. What is known about its finances is in the summary above.
Full Vercel financialsWhere the revenue comes from
Microsoft
- Productivity And Business ProcessesMajor
Office, Microsoft 365, LinkedIn, Dynamics, and related cloud services.
- Intelligent CloudMajor
Azure, server products, enterprise services, and cloud infrastructure.
- More Personal ComputingMajor
Windows, devices, gaming, search, and advertising.
- AI Services And CopilotsGrowth
AI features and model-powered services embedded across Azure, Microsoft 365, GitHub, security, and developer tools.
Vercel
- Usage-based platform fees
Majority (not disclosed)
Metered charges for compute, data transfer, requests and AI model usage. Reported in 2026 to be most of revenue.
- Pro and Enterprise plans
Not disclosed
Per-member Pro plans and negotiated Enterprise contracts with added security and support terms.
Business model and strategy
Microsoft
How it makes money
Microsoft reports three segments. Intelligent Cloud covers Azure, SQL Server, Windows Server, GitHub, Nuance, and enterprise services; server products and cloud services alone brought in $129.4 billion in FY2026, and Azure passed $100 billion in annual revenue for the first time.
Growth strategy
Microsoft's growth plan centers on AI capacity and AI subscriptions. It is spending heavily on data centers and chips to meet Azure demand that management says remains capacity constrained, and it is selling Microsoft 365 Copilot as a paid add-on, which passed 30 million paid seats by the end of FY2026.
Competitive advantage
Microsoft's main advantage is distribution inside enterprises. Identity (Entra), email and documents (Microsoft 365), collaboration (Teams), developer tools (GitHub, Visual Studio), and cloud infrastructure (Azure) are often bought together, which raises switching costs and lets Microsoft attach new products such as Copilot to existing contracts.
Vercel
How it makes money
Vercel sells a hosted platform for deploying web applications. A free Hobby tier covers personal, non-commercial projects. The Pro plan charges per team member and includes a monthly usage allowance, and Enterprise contracts are negotiated individually and add security, compliance and support terms.
Growth strategy
Vercel's strategy is to become the default place where AI-built applications run. It markets itself as an "AI Cloud", combining hosting, Fluid compute (introduced in 2025), the AI SDK, an AI Gateway for calling third-party models, and v0 for building apps from prompts.
Competitive advantage
Vercel's edge comes from being the steward of Next.js, a widely used React framework, which lets it support new framework features on its own platform first. Git-based deployments with a preview link for every pull request make the product part of daily team review. Its AI products, v0 and the AI SDK, bring in developers and coding agents that build new apps and deploy them to Vercel by default.
Questions about Microsoft vs Vercel
Which company has higher revenue — Microsoft Corporation or Vercel Inc.?
Microsoft Corporation reported $331.8B (FY2026). A verified revenue figure for Vercel Inc. was not available at the time of this comparison.
What is the market cap of Microsoft Corporation vs Vercel Inc.?
Microsoft Corporation has a market capitalisation of $3.83T. A public market cap figure for Vercel Inc. was not available (it may be privately held).
Which is more financially efficient — Microsoft Corporation or Vercel Inc.?
Microsoft Corporation generates $1.49M / employee in revenue per employee. A comparable figure for Vercel Inc. requires matching employee and revenue data from the same reporting period.
How do Microsoft Corporation and Vercel Inc. make money?
Microsoft Corporation and Vercel Inc. generate revenue in fundamentally different ways. Microsoft Corporation: Microsoft reports three segments. Vercel Inc.: Vercel sells a hosted platform for deploying web applications.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Microsoft vs Vercel overview