Microsoft Discloses Azure Revenue for First Time: $33.2 Billion in Q1 FY2027

Microsoft revealed Azure’s quarterly revenue in dollar terms for the first time on October 28, 2026, reporting that its cloud platform generated $33.2 billion in the July–September quarter — a 48% increase from the same period a year earlier.

The disclosure marks a significant shift for Microsoft, which had previously only shared Azure’s performance as a growth percentage or in vague dollar milestones. The new figures allow direct comparisons with rivals Amazon Web Services and Google Cloud, both of which already report cloud revenue in dollars each quarter.

Azure’s $33.2 billion edged out Google Cloud, which reported $30.7 billion for the same quarter. However, Google Cloud — which includes Google’s Workspace subscriptions — roughly doubled its revenue year-over-year, growing approximately twice as fast as Azure. Amazon is scheduled to report its cloud results on Thursday.

Azure’s quarterly result beat analyst expectations of $32.3 billion by roughly $850 million. Its 48% growth rate also surpassed the 44% to 45% range that Microsoft CFO Amy Hood had forecast during the company’s July earnings call.

Azure is now Microsoft’s largest and fastest-growing product line, accounting for approximately 36% of the company’s $92.3 billion in total quarterly revenue. The platform sits within Agents and Infra, one of two new business segments Microsoft introduced this quarter, replacing its previous three-segment structure. The Agents and Infra segment, which groups Azure with Microsoft 365’s cloud business, brought in $76.8 billion, up 25% year-over-year.

The first-ever dollar disclosure of Azure’s revenue may intensify scrutiny of the cloud market’s competitive dynamics. AWS has held the top position since the market’s early days, and analysts do not currently expect Microsoft to surpass it — but with all three major providers now reporting comparable figures, the gap between them is measurable in a way it has not been before.