Microsoft Azure generated $29.4 billion in quarterly sales, trailing Amazon Web Services but leading Google Cloud

Microsoft disclosed that its Azure cloud computing business generated $29.4 billion in sales during the latest quarter and reached $101.9 billion in annual sales ending June 30. The company reported these figures for the first time, allowing direct comparisons with competitors like Amazon Web Services, which sold $42.2 billion in the same period, and Google Cloud, which earned $24.8 billion. Microsoft shares rose following the announcement, though some investors had noted that previously disclosed growth rates made independent revenue verification difficult before this report. In addition to sales data, the company revised its Azure revenue forecast slightly downward compared to the previous month's outlook. Microsoft also announced a major restructuring, merging three business segments into two: 'Agents and Infra' for cloud and AI services, and 'Devices and Consumer' covering hardware and advertising. This structural change aims to reflect the increasing influence of artificial intelligence on its product lines.