"“$7.5 billion for the world's most dominant coding platform, and which is also now the world's most adopted AI coding tool, and then also the primary channel through which Microsoft acquires developers who make cloud decisions,” Lockerbie called it “maybe one of the best technology acquisitions of the last decade.”"
"“GitHub itself is seeing unprecedented growth driven by the proliferation of agentic coding, and we are hard at work to scale and meet this demand,” he said. He disclosed that nearly 140,000 organizations now use GitHub Copilot in Enterprise, nearly tripled year over year, and that GitHub Copilot CLI usage is nearly doubling month over month."
"Microsoft reported Q3 FY26 revenue of $82.89 billion, up 18% year over year, and EPS of $4.27 versus a $4.07 estimate. The AI business surpassed an annual revenue run rate of $37 billion, up 123% year over year, and commercial remaining performance obligations hit $627 billion, up 99%."
"The hosts focused on three reinforcing dynamics: Scale: 100 million registered developers sit inside GitHub. Productivity: Per Stig Brodersen, GitHub Copilot lets developers write code “20 to 30 times faster in ways that show up directly in the shipping times for future products.”"
GitHub’s acquisition supports Microsoft’s developer ecosystem through a large registered developer base and widespread use of AI coding tools. GitHub Copilot adoption is growing rapidly in enterprise, with Copilot CLI usage increasing month over month. Microsoft’s results show strong revenue growth, higher-than-expected EPS, and accelerating AI revenue run rates. Commercial remaining performance obligations have risen sharply, indicating sustained demand. The acquisition price is small relative to Microsoft’s current market scale. The combined effects of scale, productivity gains, and developer acquisition for cloud decisions reinforce a compounding “flywheel” that benefits future product shipping and cloud growth.
Read at 24/7 Wall St.
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