Microsoft Cloud Revenue Crosses $50B Quarterly — Azure Leads Growth

Microsoft reported quarterly cloud revenue exceeding $50 billion for the first time, as Azure's artificial intelligence services drove accelerating growth across its enterprise customer base. The company's total revenue of $70.1 billion topped analyst estimates, and shares gained 4.5% in after-hours trading.

Azure grew 33% in constant currency, ahead of the 31% consensus estimate, with CEO Satya Nadella attributing a meaningful portion of the beat to AI services including Copilot for Microsoft 365, Azure OpenAI Service, and the newly launched Azure AI Foundry platform.

Segment performance

• —Intelligent Cloud: $50.4B (+26% YoY) — Azure +33% constant currency
• —Productivity & Business Processes: $28.3B (+15% YoY) — M365 Copilot adoption accelerating
• —More Personal Computing: $15.6B (+9% YoY) — Surface and Xbox stable
• —Operating margin: 47.1% — expansion driven by AI workload leverage

Every customer conversation starts with AI. Azure AI is growing faster than Azure grew at a comparable scale — the opportunity is enormous. — Satya Nadella, CEO Microsoft