Microsoft says Azure grew 48% as cloud revenue hit $63.9B

Microsoft reported $92.3 billion in quarterly revenue, with Microsoft Cloud contributing $63.9 billion. Azure revenue grew 48% from a year earlier, both on a reported and constant-currency basis.

The figures show that demand for cloud and AI infrastructure remains strong even at Microsoft’s scale. They also give investors another way to judge whether the company’s large spending on data centers, chips and model capacity is translating into sales.

Microsoft added more AI-specific adoption figures on its earnings call. The company said Microsoft Foundry now serves more than 120,000 customers and that revenue from the platform more than tripled from a year earlier. Customers building agents with multiple models increased fivefold, while revenue from open-source models on Foundry grew tenfold.

Capital spending and finance leases reached $45.2 billion, below expectations after third-party data-center capacity was delayed. Microsoft nevertheless expects spending above $50 billion in the next quarter, signaling that supply timing rather than weaker demand constrained the buildout.

The report landed alongside Alphabet’s results, which showed Google Cloud revenue more than doubling. Together, the numbers suggest hyperscaler competition is increasingly about how quickly new AI capacity turns into cloud consumption rather than simply who can build the largest infrastructure footprint.