Microsoft reveals Azure generated over $33B in quarterly revenue
What's the story
Microsoft has revealed the dollar value of its cloud computing platform, Azure, for the first time. The company reported a whopping $33.2 billion in revenue from Azure for Q3 2026 (July-September). This is a massive 48% increase compared to the same period last year. The disclosure allows investors to directly compare Azure's performance with Amazon Web Services (AWS) and Google Cloud, both of which already report their cloud revenues in dollars every quarter.
Revenue comparison
Azure is slightly ahead of Google Cloud
In the same quarter, Google's parent company Alphabet reported $30.7 billion in revenue from Google Cloud. This puts Azure slightly ahead of its competitor.
However, it's worth noting that Google Cloud, which also includes subscriptions for Google's Workspace, saw its revenue double from a year ago, growing at nearly twice the rate of Azure's growth rate of 48%.
Market performance
It now contributes to over one-third of Microsoft's revenue
Azure, which provides businesses with computing power to run applications and build AI models, is now Microsoft's largest and fastest-growing product line.
It contributed about 36% of Microsoft's total quarterly revenue of $92.3 billion.
The platform's revenue also exceeded analysts' expectations by nearly $850 million, beating the forecasted figure of $32.3 billion for this quarter.
Growth trajectory
Azure exceeds Microsoft's growth expectations
Azure's growth rate of 48% also surpassed the 44%-45% range that Microsoft CFO Amy Hood had predicted during the company's July earnings call.
This impressive performance comes as part of a new business segment called Agents and Infra, which groups Azure with Microsoft 365's cloud business.
The new segment generated $76.8 billion in revenue, a 25% increase from last year.