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Microsoft (MSFT) has told Wall Street Azure was growing quickly.
While it hadn’t previously disclosed the product-specific revenue, that changed this week.
Microsoft shared quarterly Azure revenue for the first time showing $29.4 billion in the most recent quarter and $101.9 billion in the fiscal year ended June 30
The disclosures provide investors their clearest picture yet of where Microsoft stands in the cloud computing competition, with Azure behind Amazon’s (AMZN) Amazon Web Services but ahead of Alphabet’s (GOOGL) Google Cloud, based on the companies’ latest quarterly sales numbers.
But maybe the scale of Azure is not the most relevant component of the Microsoft statement.
The firm is also altering how it reports its operations, going from three business categories to two as artificial intelligence increasingly spans cloud infrastructure, software, and AI applications.
Microsoft CEO Satya Nadella said AI is transforming what Microsoft creates and how the business works, making its products less distinct from one another.
For investors, it poses a greater challenge than whether Azure can catch AWS.
Microsoft could be hinting that the traditional approach of assessing its operations no longer suits the company it is becoming.
Microsoft finally reveals how big Azure has become
Azure generated $29.4 billion in sales during Microsoft’s latest quarter, StockTwits noted, and $101.9 billion during the fiscal year ended June 30.
That provides a concrete figure for a business that Microsoft has mostly spoken about in terms of growth percentages.
It also makes the comparison with Microsoft’s top cloud competitors much clearer for investors.
Amazon Web Services made $42.2 billion in revenue in its last quarter, compared to $24.8 billion for Google Cloud, as Reuters reported.
AWS generated $128.7 billion in calendar 2025 sales, compared with $85.8 billion for Azure over the comparable four-quarter period. Google has not disclosed an equivalent full-year cloud figure.
AWS is still the biggest standalone cloud business.
But the announcement from Microsoft also demonstrates how much Azure has grown on its own.
The cloud platform generates more than $100 billion a year as companies ramp up spending on the infrastructure required to operate artificial intelligence models, apps, and agents.
Microsoft’s recent results underscore the trend.
Azure and other cloud services revenue increased 43% year over year in Microsoft’s fiscal fourth quarter. Companywide revenue rose 18% to $90 billion, while operating income increased 18% to $40.6 billion. For the full fiscal year, Microsoft generated $331.8 billion in revenue.
