Microsoft reveals Azure cloud sales in financial reporting shift

Microsoft disclosed its quarterly Azure cloud computing sales for the first time in its financial reporting, marking a shift amid the AI data center boom. In the most recent quarter, Azure generated $29.4 billion in sales, while the company's fiscal year ended June 30 saw $101.9 billion in Azure sales. Microsoft trails behind Amazon, which reported $42.2 billion in cloud sales for its most recent quarter, but surpasses Google, which had $24.8 billion in cloud sales for the same period.

Microsoft had previously reported Azure's growth rate but not its sales figures. The company will now consolidate three reporting segments into two: "Agents and Infra," which encompasses cloud computing services, AI-based software sales, and traditional business software revenue, and "Devices and Consumer," which includes Windows, Xbox gaming, and advertising sales across Bing search and LinkedIn.

Microsoft CEO Satya Nadella emphasized that AI is transforming their technology, operations, and business models. The company also adjusted its Azure revenue forecast slightly downward, but clarified that the change is due to the reclassification of some GitHub sales to its M365 Cloud software businesses. Overall, Microsoft's outlook for the current quarter remains unchanged.

Notably, Microsoft's cloud computing business is a major provider to OpenAI, which previously relied exclusively on Microsoft for model training. As of 2025, AWS reported $128.7 billion in sales, while Microsoft Azure had $85.8 billion in sales over the comparable four-quarter period. Google has not disclosed its full-year cloud sales.