Microsoft’s cloud revenue continued to beat expectations as the company profited from its massive AI investments, most notably in Azure, for which it disclosed quarterly revenue in dollar terms for the first time Wednesday.
Revenue in the new segment Agents and Infra, which includes Azure and Microsoft products, was up 25% to $76.8 billion during its first fiscal quarter of the year. Overall Azure revenue rose 48% for the quarter ended September 30, 2026, compared with the same period last year, the company said Wednesday. Azure revenue stood at $33.16 billion, up from $22.4 billion.
Meanwhile, the company said Microsoft Cloud revenue was $63.9 billion, up 30%, “reflecting strong demand across Azure and Microsoft 365 commercial cloud,” according to the earnings presentation.” Microsoft 365 commercial cloud revenue rose 18%, while Microsoft 365 consumer cloud revenue rose 17%.
The company reported overall revenue of $92.3 billion for the quarter, a 19% increase. Microsoft’s earnings came a day after the company said it would offer buyouts to 60,000 employees to cut costs and adjust its workforce for AI, Bloomberg reported.
