Microsoft's latest SQL Server is growing as an IaaS service in Azure.

Judged as of 2026-01-28. True: Microsoft earnings materials (FY26 Q2 call transcript, investor slides) or other dated Microsoft records from around that date show that its latest SQL Server version (e.g. SQL Server 2025) was growing in use or revenue as an IaaS offering in Azure, such as SQL Server on Azure Virtual Machines. Mostly true: growth in SQL Server on Azure IaaS is documented, but the stat is about SQL Server generally rather than specifically the latest version, or a minor detail differs. Mixed: growth is shown only for a related measure that partly matches the claim, such as Azure SQL overall with IaaS not separated out. Mostly false: the cited growth is for a different offering (e.g. a PaaS service like Azure SQL Database) presented as IaaS, or growth is shown only for the on-premises product. False: evidence shows SQL Server IaaS use in Azure was flat or declining at the time.

Set before the research began.

1. E1 The Motley Fool_Microsoft (MSFT) Q2 2026 Earnings Call Transcript The Motley Fool (transcript hosted on Scribd) · 28 January 2026

   “In fact, one of the stats I had was SQL our latest SQL Server growing as an IaaS service in Azure.”

2. E2 The Motley Fool_Microsoft (MSFT) Q2 2026 Earnings Call Transcript The Motley Fool (transcript hosted on Scribd) · 28 January 2026

   “In our on-premises server business, revenue increased 21% in constant currency ahead of expectations driven by demand for our hybrid solutions including a benefit from the launch of SQL Server 2025.”

3. E3 FY26 Q2 - Intelligent Cloud Performance - Investor Relations - Microsoft Microsoft Investor Relations · 22 October 2026 Own record

   “Server products revenue increased 2% driven by demand for our hybrid solutions, with benefit from the launch of SQL Server 2025, and higher transactional purchasing.”

4. E4 SQL Server 2025 is Now Generally Available | Microsoft Community Hub Microsoft (Microsoft Community Hub, SQL Server blog) · 18 November 2025 Own record

   “Run SQL Server 2025—any edition, Standard, Enterprise, Enterprise Developer, or the new Standard Developer Edition—on Azure Virtual Machines, using optimized VM families like Mbdsv3, Ebdsv5/6, and FXmdsv2 for high performance.”

5. E5 The Motley Fool_Microsoft (MSFT) Q2 2026 Earnings Call Transcript The Motley Fool (transcript, hosted on Scribd) · 28 January 2026 Own record

   “In fact, one of the stats I had was SQL our latest SQL Server growing as”

6. E6 The Motley Fool_Microsoft (MSFT) Q2 2026 Earnings Call Transcript The Motley Fool (transcript, hosted on Scribd) · 28 January 2026 Own record

   “In our on-premises server business, revenue increased 21% in constant currency ahead of expectations driven by demand for our hybrid solutions including a benefit from the launch of SQL Server 2025.”

7. E7 FY26 Q2 - Intelligent Cloud Performance - Investor Relations - Microsoft Microsoft Investor Relations Own record

   “Server products revenue increased 2% driven by demand for our hybrid solutions, with benefit from the launch of SQL Server 2025, and higher transactional purchasing.”

8. E8 FY26 Q2 - Intelligent Cloud Performance - Investor Relations - Microsoft Microsoft Investor Relations Own record

   “Azure and other cloud services revenue grew 39% driven by demand for our portfolio of services with continued growth across all workloads.”

The only support for SQL Server growing as an IaaS service in Azure is Nadella's own remark on the FY26 Q2 earnings call (E1, E5). That remark gives no figure and no further detail. Microsoft's earnings materials link SQL Server 2025 to growth in on-premises server revenue (21% in constant currency) and to a 2% rise in server products revenue (E2, E3, E6, E7). Neither measure separates out SQL Server on Azure Virtual Machines, and the 39% Azure figure covers all workloads (E8). The GA announcement only says SQL Server 2025 can run on Azure VMs (E4), so no record confirms or contradicts IaaS growth.