Microsoft Unveils Azure Revenue, Reshapes Reporting Around AI

Microsoft’s Azure cloud platform has become central to the company’s growth as businesses spend more on computing capacity, data services and generative AI. Yet Microsoft historically disclosed only Azure’s growth rate, leaving investors without a direct revenue figure. Separate reporting will make it easier to compare Azure’s scale and momentum with Amazon Web Services and Alphabet’s Google Cloud as the three companies expand costly AI infrastructure.

Microsoft said on Sept. 2 that Azure generated $29.42 billion in revenue in the quarter ended June 30, up 42% from a year earlier, while full-year sales reached $101.9 billion. The company will also replace its three reporting segments with two: “Agents and Infra,” covering Azure, enterprise software and AI products, and “Devices and Consumer,” encompassing Windows, Xbox, devices and advertising. The overhaul reflects Chief Executive Satya Nadella’s push to organize Microsoft around its AI transition.