Microsoft has historically shied away from providing Azure's quarterly revenue in specific dollar amounts, preferring growth percentages or vague milestones. However, during their record-breaking earnings report on Wednesday, the tech giant revealed that Azure generated $33.2 billion in revenue for the July–September quarter, marking a 48% year-over-year increase.
This financial transparency enables investors to compare Azure’s performance directly against Amazon Web Services and Google Cloud, both of which publicly report their cloud revenues annually.
Alphabet, which also reported its earnings on Wednesday, stated that Google Cloud earned $30.7 billion over the same period, placing Azure slightly ahead. Despite this, Google Cloud, which includes Workspace subscriptions, roughly doubled its revenue compared to the previous year, growing approximately twice as fast as Azure, as noted by TechCrunch.
Azure, the platform where businesses rent computing power for applications and AI model development, is currently the company's largest and fastest-growing product line. According to Microsoft’s figures, it accounted for approximately 36% of the company's total quarterly revenue of $92.3 billion.
The revenue figure also exceeded the $32.3 billion anticipated by analysts by about $850 million. Furthermore, Azure’s 48% growth rate surpassed the 44% to 45% range forecast by CFO Amy Hood during the company's previous earnings call.
Azure operates within the new "Agents and Infra" business segment, one of two divisions Microsoft introduced this quarter. Previously, the company operated under three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The new segment, which groups Azure with Microsoft 365’s cloud business, generated $76.8 billion, representing a 25% increase from the prior year.
Amazon is set to report its earnings on Thursday, with analysts anticipating growth in its cloud unit, Amazon Web Services. While AWS has maintained its position as the largest cloud provider for years and is not expected to be overtaken by Microsoft immediately, the race is intensifying now that all major players are disclosing concrete dollar figures.
The Editorial Staff at AIChief is a team of professional content writers with extensive experience in AI and marketing. Founded in 2025, AIChief has quickly grown into the largest free AI resource hub in the industry.