Microsoft reveals $75 billion in Azure revenue as AI investments drive growth

Microsoft announced Wednesday that its Azure cloud computing platform has generated more than $75 billion in annual revenue, marking a 34% increase from the previous year.

The disclosure came as part of the company’s end-of-year earnings report and highlighted Azure’s central role in Microsoft’s growing artificial intelligence strategy.

The report also showed a strong financial performance overall. Microsoft posted a fiscal fourth-quarter profit of $34.3 billion, or $3.65 per share, surpassing Wall Street expectations of $3.37 per share. Revenue for the April-June quarter hit $76.4 billion, up 18% from the previous year and ahead of the $73.86 billion analysts had predicted.

CEO Satya Nadella emphasized Microsoft’s aggressive expansion in cloud infrastructure, telling investors the company now operates over 400 data centers across six continents — more than any competitor.

Despite Azure’s impressive growth, it still lags behind Amazon Web Services, which reported $107.6 billion in annual revenue. Building the infrastructure needed to support AI and cloud growth remains costly. To offset expenses, Microsoft has laid off about 15,000 employees this year, even as overall workforce numbers held steady at 228,000.

The company’s cost-cutting efforts and capital spending have reassured investors, especially amid rising expenses tied to AI infrastructure. Microsoft CFO Amy Hood said capital expenditures for the current quarter are expected to reach $30 billion.

Meanwhile, Microsoft noted that U.S. tariffs and geopolitical instability present ongoing risks, particularly for its cloud and device supply chains. The company warned of a “volatile trade landscape” that could affect its global competitiveness.