Microsoft's Azure Earnings Exceed $75 Billion Annually, Fueling Impressive Q2 Performance
Microsoft Corporation recently reported outstanding quarterly results, with total revenue reaching an impressive $76.4 billion. The tech giant's unmatched cloud momentum is evident in these results, as its Azure cloud platform recorded a 39% year-on-year increase in revenue in constant currency.
The latest results showcase a company demonstrating a rare ability to scale innovation while driving profitability. Azure's growth outpaced expectations, and the platform is currently the second largest cloud provider by revenue, generating over $75 billion in fiscal 2025. This figure was disclosed by Microsoft for the first time.
Despite Amazon Web Services (AWS), the market leader, reporting about $116.5 billion for the trailing 12 months ending June 2025, with an 18% growth rate, Azure holds roughly 20% of the market, making it the clear number two. Google Cloud trails behind at 13%.
Microsoft Cloud overall saw a 26% revenue increase in the most recent quarter, and Azure plus other cloud services grew by 39% in that period, highlighting robust expansion driven by various workloads and AI integration efforts.
Azure's growth is central to Microsoft's strategy, particularly as the company scales data center capacity aggressively to support cloud and AI demand. Microsoft now operates over 400 data centers globally across six continents.
The data indicates that Azure is growing faster than AWS but remains smaller, consolidating Microsoft's position as the runner-up in the cloud infrastructure market.
AI integration is gaining speed across Microsoft's platforms, and the company is accelerating AI monetisation. Josh Gilbert, Market Analyst at eToro, stated that Microsoft is perfectly positioned to lead the next wave of technology innovation.
The strong performance was across cloud, productivity, and personal computing segments. Microsoft's operating income for the quarter increased by 23% to USD $34.3 billion. Operating margins continued to expand, and earnings per share (EPS) for Microsoft surged to USD $3.65, beating market expectations.
In summary, Microsoft's Azure cloud platform is a fast-growing cloud platform with a strong market position as the main competitor to AWS. The company's focus on AI integration and aggressive data center expansion positions it well for continued growth in the cloud and AI markets.
| Cloud Provider | Approx. 2025 Revenue | Growth Rate (YoY) | Market Share Q2 2025 | |-----------------|---------------------|-------------------|---------------------| | AWS | $116.5 billion | 18% | 30% | | Microsoft Azure | $75+ billion | 34% | 20% | | Google Cloud | - | - | 13% |
- Azure's rapid growth, with a year-on-year increase of 34%, positions Microsoft as a strong competitor against market leader Amazon Web Services (AWS), consolidating Microsoft's position as the number two cloud provider by revenue.
- Microsoft's strategic focus on AI integration and aggressive expansion of data centers globally is pivotal to driving growth in its Azure cloud platform, which contributes significantly to the company's overall revenue.
- The increasing integration of AI across Microsoft's platforms, along with the company's commitment to accelerating AI monetization, suggests that Microsoft is poised to lead the next wave of technological innovation.
