Microsoft discloses Azure revenue as cloud unit reaches $33.2 billion

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Microsoft Azure revenue disclosure

Highlights

Microsoft reported Azure revenue of $33.2 billion for July–September, up 48% year-over-year and surpassing analyst expectations by $850 million.
Google Cloud generated $30.7 billion over the same period, growing more than twice as fast but trailing Azure in total revenue despite including Workspace subscriptions.
Azure now constitutes 36% of Microsoft's $92.3 billion quarterly revenue and is the largest and fastest-growing company product line, boosting transparency against competitors.

Quarterly disclosure sharpens cloud revenue comparison

As reported by TechCrunch, Microsoft said Azure generated $33.2 billion in revenue in the July to September quarter, up 48% from a year earlier, marking the first time the company has disclosed the business's quarterly revenue in dollar terms.

The figure gives investors a more direct way to compare Azure with rivals whose parents already report cloud revenue each quarter. Alphabet said on Wednesday that Google Cloud brought in $30.7 billion in the same period, leaving Azure modestly ahead on revenue. TechCrunch calculated that Google Cloud, which also includes Google Workspace subscriptions, roughly doubled from a year earlier, growing about twice as fast as Azure.

Azure also outperformed expectations inside Microsoft's own guidance and against Wall Street forecasts. Its revenue came in about $850 million above the $32.3 billion analysts expected, and the 48% growth rate exceeded the 44% to 45% range that Chief Financial Officer Amy Hood forecast on Microsoft's July earnings call.

Cloud business gains weight in Microsoft's structure

Azure is now Microsoft's largest and fastest-growing product line by the company's own figures, accounting for roughly 36% of the company's $92.3 billion in quarterly revenue. The business includes computing capacity used by companies to run applications, software services and artificial intelligence models.

Microsoft now places Azure inside Agents and Infra, one of two new business segments introduced this quarter. The segment, which combines Azure with Microsoft 365's cloud business, brought in $76.8 billion in revenue, up 25% from a year earlier.

The disclosure comes as competition among the largest cloud providers remains intense. Amazon is due to report earnings on Thursday, and analysts expect Amazon Web Services to post growth as well. AWS remains the industry's largest cloud provider, but Microsoft's decision to publish Azure's revenue in dollars gives the market a clearer basis for tracking the contest among the top cloud platforms.

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