Microsoft’s New Azure Disclosure: $29.4B in Quarterly Sales, $101.9B for the Year

Microsoft is changing how investors see its cloud business. For the first time, the company disclosed Azure’s sales in dollars: $29.4 billion for the most recently ended quarter and $101.9 billion for the fiscal year ended June 30, 2026. 10 The move gives Azure a clearer comparison with Amazon Web Services and Google Cloud, but Microsoft is also narrowing the products counted as Azure, making historical comparisons more complicated.

Azure’s newly disclosed revenue

Microsoft previously emphasized Azure’s year-over-year growth rate rather than reporting the unit’s quarterly sales directly. Under the new disclosure, Azure generated:

• $29.4 billion in quarterly sales;
• $101.9 billion in fiscal-year sales for the year ended June 30, 2026. 10

Those figures should not be confused with Microsoft’s earlier “Azure and other cloud services” metric. That broader measure grew 43% year over year in fiscal Q4 2026 and 41% for the full fiscal year, according to Microsoft’s earnings materials. 16 Because the revised Azure definition removes several products, its growth rate is not automatically comparable with the older metric.

Microsoft’s total revenue was $90 billion in the June quarter, up 18% year over year, while fiscal 2026 revenue reached $331.8 billion. 14

How Azure compares with AWS and Google Cloud

The new dollar disclosure makes a more direct cloud-scale comparison possible:

• Azure: $29.4 billion in the latest quarter and $101.9 billion for the latest fiscal year. 10
• AWS: $42.2 billion in its most recent quarter cited in the reporting.
• Google Cloud: the supplied reporting places Google Cloud below Azure for the cited comparison, but does not provide the exact figure.

On the available quarterly numbers, Azure remains behind AWS. The evidence supports the conclusion that Azure was ahead of Google Cloud in the cited comparison, but it does not support adding a precise Google Cloud revenue figure.

The comparison also requires caution. Amazon and Alphabet have long reported their cloud businesses as revenue lines, while Microsoft’s previous Azure disclosures focused mainly on growth rates. Microsoft’s new format improves transparency, but the narrower definition means analysts will need to rebuild historical comparisons rather than simply place the new figures beside older “Azure and other cloud services” numbers.

Microsoft’s two new reporting segments

Starting with fiscal Q1 2027, Microsoft will replace its three-segment reporting structure with two divisions.

Agents and Infra

This segment will include:

• cloud-computing services;
• sales from AI-based software;
• more traditional business software, including Microsoft 365 and related productivity and server businesses.

The structure reflects Microsoft’s effort to show infrastructure, AI applications and established software as connected parts of one commercial engine rather than as entirely separate businesses.

Devices and Consumer

This segment will include:

• Windows;
• Xbox gaming;
• advertising across Bing and LinkedIn;
• device sales and related consumer businesses.

The reorganization moves Microsoft’s consumer-facing and device activities together while placing cloud and productivity operations in the AI- and infrastructure-oriented segment.

What the narrower Azure definition excludes

Microsoft’s revised Azure reporting will exclude at least four categories identified in the supplied reporting:

• GitHub cloud services;
• developer cloud services;
• the Security Copilot assistant;
• healthcare and life-sciences cloud products. 7

That change matters because Microsoft previously included some cloud-related revenue from acquired or adjacent products in its “Azure and other cloud services” reporting. The standalone figure should therefore be more focused, but it may also show slower or faster reported growth simply because the basket of included products has changed.

Why AI is reshaping the reporting model

Microsoft is reorganizing its disclosures while cloud providers are spending heavily to supply computing capacity for artificial intelligence. Azure is a central part of Microsoft’s AI infrastructure strategy, and the new segment names put that emphasis directly into the company’s reporting structure.

Microsoft’s relationship with OpenAI is also commercially significant. A Microsoft investor-relations call said OpenAI had contracted an incremental $250 billion of Azure services, while describing continuing revenue-sharing and intellectual-property arrangements. 5 That evidence documents a major Azure commitment from OpenAI, but it does not establish what percentage of Azure revenue depends on OpenAI. The supplied sources also do not provide a verified figure for Anthropic’s reliance on Azure.

The financial backdrop is continued investment. Microsoft forecast $50 billion in capital expenditures for fiscal Q1 2027 after an accounting change affecting data-center leases. 2 Separately, reporting on the company’s calendar-2026 outlook put capital-expenditure expectations at approximately $175 billion after the accounting adjustment. 1112 Those figures are different time horizons and should not be treated as equivalent to a full fiscal-2027 forecast.

What the change means for investors

The overhaul answers a long-standing transparency question: how large is Azure in actual dollars, not just in percentage growth? The answer is now clear enough to establish a scale—$29.4 billion in the latest quarter and $101.9 billion for the fiscal year—but comparisons with prior periods require care because Microsoft is changing the definition at the same time.

The immediate market response was positive. Reuters reported that Microsoft shares rose after the disclosure and earnings outlook, while CNBC reported an approximately 8% jump in the stock following the results. 212 The stronger visibility into Azure, continued AI demand and the company’s spending outlook appear to have mattered more to investors than the complexity of the reporting transition, although the supplied evidence does not isolate the effect of each factor.