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Microsoft just shared Azure’s actual revenue in dollars: $33.2 billion
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Microsoft on Wednesday reported that Azure generated $33.2 billion in revenue for the July-September quarter, up 48% from a year earlier. The figure marks the first time Microsoft has disclosed Azure’s quarterly revenue in dollars. Previously, the company shared only growth percentages or vague revenue milestones for its cloud-computing unit.
The disclosure gives investors a clearer way to compare Azure with Amazon Web Services and Google Cloud, whose parent companies already report cloud revenue in dollars each quarter. Azure rents computing power for applications, SaaS, and AI model development. By Microsoft’s own figures, it is now the company’s largest and fastest-growing product line, accounting for roughly 36% of $92.3 billion in quarterly revenue.
Azure beat analysts’ expectations of $32.3 billion by about $850 million. Its 48% growth also topped the 44% to 45% range that CFO Amy Hood forecast on the July earnings call. The result came as Microsoft posted another record-breaking quarter.
Alphabet, which also reported earnings Wednesday, said Google Cloud brought in $30.7 billion in the same quarter, placing Azure slightly ahead. But Google Cloud, which includes Workspace subscriptions, roughly doubled its revenue year over year. According to TechCrunch’s calculations, it grew about twice as fast as Azure.
Azure now sits inside Agents and Infra, one of two new business segments Microsoft introduced this quarter. The segment, which also groups Azure with Microsoft 365’s cloud business, generated $76.8 billion, up 25% from a year earlier. Microsoft previously reported three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
Amazon reports earnings Thursday, and analysts expect AWS to grow. AWS has long been the largest cloud provider, and no one expects Microsoft to overtake it now. With all three companies reporting actual cloud dollars, however, the competition is entering a more transparent phase.
