Microsoft posts 19% revenue growth as Azure hits $33.2 billion

· Tech · United States

Microsoft reported September-quarter revenue of $92.3 billion, up 19% year over year and its tenth straight record quarter, with net income of $33.6 billion, up 32%. For the first time the company disclosed Azure revenue in dollars: $33.2 billion, a figure boosted partly by server rental revenue from OpenAI. Microsoft also said it recorded $10 billion in revenue from commercial arrangements with OpenAI, including revenue-sharing payments, underscoring how dependent the partnership remains. Weaker spots included Xbox. On the call, CFO Amy Hood trimmed the capital expenditure forecast, citing delays in third-party capacity, as investors press for returns on AI spending. The disclosure of Azure dollar figures and the capex cut both aim to show the cloud business is monetizing AI even as data-center buildout costs weigh on cash flow.

Why it matters：Azure's first dollar-level disclosure lets investors finally size Microsoft's cloud against AWS and judge whether AI infrastructure spending is converting into revenue rather than just capex.

Key points

  • Net income rose 32% to $33.6 billion on $92.3 billion in revenue.
  • Microsoft said OpenAI commercial arrangements generated $10 billion in the quarter.
  • Xbox was among the units with slight revenue declines.

Sources (original reporting)

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