Microsoft shares Azure actual revenue of $33.2 billion
Microsoft revealed Azure's actual dollar revenue for the first time, reporting $33.2 billion for the July-September quarter, up 48% year-over-year.
Stock photo for illustration only, not from the actual event
- Microsoft disclosed Azure's actual dollar revenue for the first time
- Revenue reached $33.2 billion for the July through September quarter
- Growth hit 48%, topping both analyst expectations and internal forecasts
Historically, Microsoft has chosen not to disclose Azure's quarterly revenue in explicit dollar figures, typically opting instead to share growth percentages or vague milestones. However, alongside another record-breaking quarter report, the company finally shared the exact financial figures for its flagship cloud service.
Azure brought in a total of $33.2 billion in revenue during the July–September quarter. This represents a robust 48% increase compared to the same period from the previous year.
This disclosure arrives as Microsoft introduces new business segments, housing Azure within a newly formed segment called Agents and Infra. This grouping pairs Azure alongside Microsoft 365's cloud business, which collectively brought in $76.8 billion, marking a 25% increase from the prior year.
By finally sharing dollar figures, Microsoft allows investors to draw direct performance comparisons against competitors like Amazon Web Services and Google Cloud, whose parent companies consistently report cloud revenue in explicit dollar amounts every quarter. This move brings a new level of transparency and direct comparability to the highly competitive cloud computing market.
Stock photo for illustration only, not from the actual event
Alphabet, which reported its earnings on the same Wednesday, stated that Google Cloud generated $30.7 billion during the identical quarter, placing Azure slightly ahead. Nonetheless, calculations indicate that Google Cloud—which includes Google Workspace subscriptions—roughly doubled its revenue year-over-year, growing at about twice the pace of Azure.
Furthermore, Azure's revenue came in approximately $850 million higher than the $32.3 billion that analysts had anticipated. The 48% growth rate also surpassed the 44% to 45% forecast that Microsoft CFO Amy Hood had outlined during the July earnings call.
Source: TechCrunch
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