Microsoft Discloses Azure Revenue of $33.2 Billion for July-September Quarter

Microsoft posted another record-breaking quarter and reported that Azure generated $33.2 billion in revenue for the July-September period, up 48% from a year earlier. The figure is the first time Microsoft has disclosed Azure's quarterly revenue in dollars, and it accounted for roughly 36% of the company's $92.3 billion in quarterly revenue.

First dollar disclosure

Microsoft has typically shared only a growth percentage or described revenue milestones in vague ways. By reporting an actual dollar figure, the company gives investors a clearer view of Azure's performance against cloud rivals whose parent companies already report cloud revenue in dollars each quarter.

Comparison with Google Cloud

Alphabet, which also reported earnings on Wednesday, said Google Cloud brought in $30.7 billion in the same quarter, putting Azure slightly ahead. Google Cloud, which also includes Google Workspace subscriptions, roughly doubled its revenue from a year earlier and grew about twice as fast as Azure, according to TechCrunch's calculations.

Growth and expectations

Azure's revenue was about $850 million more than the $32.3 billion analysts expected. Its 48% growth rate also topped the 44% to 45% forecast by Microsoft CFO Amy Hood on the company's July earnings call. Azure, where businesses rent computing power to run applications, SaaS, and to build and run AI models, is Microsoft's largest and fastest-growing product line by the company's own figures.

New segment reporting

Azure sits inside Agents and Infra, one of two new business segments Microsoft introduced this quarter. The segment, which groups Azure with Microsoft 365's cloud business, brought in $76.8 billion, up 25% from a year earlier. Microsoft previously reported three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Cloud market outlook

Amazon reports its earnings on Thursday, and analysts expect Amazon Web Services to grow. It has been the largest cloud since the beginning of time, and no one expects Microsoft to best it right now. With all major providers reporting actual dollars, the race is on.

Sources: TechCrunch