Microsoft Finally Put a Dollar Figure on Azure—and It Is $33.2 Billion
Microsoft Finally Put a Dollar Figure on Azure—and It Is $33.2 Billion
Microsoft opened its fiscal year with another record quarter, reporting $92.3 billion in revenue, up 19% year over year, and $36.6 billion in net income, up 32%. Its Microsoft Cloud business generated $63.9 billion, a 30% increase—while the Devices and Consumer segment slipped 3% as Windows OEM and device revenue fell 22%.
The cloud momentum is increasingly tied to AI, though it is not purely an AI story. Microsoft said OpenAI contributed $10 billion in revenue, and commercial remaining performance obligations jumped 73% to $677 billion, signalling a deep pool of contracted demand from AI labs. The catch is the bill for meeting it: quarterly capital expenditure reached a record $45.2 billion.
After the earnings call, Chief Executive Satya Nadella cast the results as an early win in a larger technological shift, saying Microsoft Cloud revenue had surpassed $63 billion and growth had accelerated to 30% as the company built “the new tech stack for the agentic wave.”
The sharper development came in Microsoft’s unusually specific disclosure: Azure produced $33.2 billion in July-to-September revenue, up 48% from a year earlier. It was the first time Microsoft put a quarterly dollar figure on Azure, giving investors a cleaner comparison with rival cloud providers.
That comparison cuts both ways. Azure’s total edged Google Cloud’s $30.7 billion in the same quarter and beat analyst expectations of $32.3 billion. But Google Cloud’s revenue roughly doubled from a year earlier, growing about twice as quickly by the cited calculations. Azure now accounts for roughly 36% of Microsoft’s quarterly revenue and is its largest, fastest-growing product line—but Amazon Web Services remains the market’s incumbent leader. The cloud race is no longer being fought in percentages alone; Microsoft has put its number on the board.
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