Microsoft said on October 28, 2026 that Azure generated $33.2 billion in revenue in the July–September quarter, the first time the company has reported the cloud platform’s sales in dollars. Azure grew 48% year over year, and a regulatory filing showed Microsoft booked roughly $10 billion from its commercial arrangements with OpenAI in the same period. Both figures land in a record quarter of $92.3 billion in total revenue, and they give investors the clearest numbers yet on how much of Microsoft’s growth rests on AI demand.
What Microsoft disclosed
Until now, Microsoft gave Azure only as a growth percentage or in broad milestones. This quarter it published the dollar figure: $33.2 billion, about 36% of the company’s $92.3 billion in revenue, according to TechCrunch’s reporting. Analysts had expected about $32.3 billion, so Azure beat by roughly $850 million. Growth of 48% also cleared the 44% to 45% range that chief financial officer Amy Hood had guided to on the July earnings call.
Microsoft also reorganized how it reports results. Instead of the long-standing three segments, it now shows two new ones, and Azure sits in a segment called Agents and Infra alongside Microsoft 365’s cloud business. That segment brought in $76.8 billion, up 25% from a year earlier. The new label itself signals where the company wants investors to look: AI agents and the infrastructure that runs them.
The OpenAI line
In a filing the same day, Microsoft reported about $10 billion in revenue from its commercial arrangements with OpenAI, including revenue-sharing payments. That is nearly 11% of the quarter’s total. For the whole of fiscal 2026 the figure was $24.1 billion, so the latest quarter alone is more than 40% of last year’s total. At this pace the relationship would be worth about $40 billion a year.
The filing does not split the amount between revenue-share payments and Azure services sold to OpenAI, so it is not possible to say how much comes from each. Microsoft also reported $7.2 billion in receivables from OpenAI at the end of September, up from $6 billion at the end of June. Receivables are money OpenAI owes for past transactions, not additional revenue.
Ownership and contract terms
Microsoft’s stake in OpenAI fell from about 25% in June to 24% in September 2026. It was roughly 27% after the October 2025 recapitalization. Microsoft did not say what caused the dilution. TechCrunch notes that OpenAI reportedly shares 20% of its revenue with Microsoft, a figure neither company has confirmed, and that under an April 2026 agreement the sharing continues through 2030, subject to a cap, while OpenAI may also work with competing cloud providers. In October 2025 OpenAI committed to buy an additional $250 billion of Azure services as Microsoft gave up its exclusive cloud position.
How it compares
Alphabet reported on the same day that Google Cloud earned $30.7 billion in the quarter, so Azure is slightly ahead of Google’s cloud business, although Google’s figure includes Workspace subscriptions and roughly doubled from a year earlier. Amazon reports on Thursday, and AWS remains the largest provider. With all three now reporting cloud revenue in dollars, comparisons are more direct than they have been. The numbers also help explain the cost pressure we covered in our report on Microsoft’s voluntary exit offer, since AI capacity is expensive to build.
What to watch next
- Amazon’s AWS results on Thursday, which will complete the three-way cloud comparison in dollars.
- Whether Microsoft breaks out OpenAI revenue between revenue sharing and Azure services in later filings.
- Further dilution of Microsoft’s OpenAI stake as OpenAI raises capital.
- How the new Agents and Infra segment performs against the old Intelligent Cloud numbers.
- The effect of OpenAI’s pricing moves, such as the discounts aimed at Anthropic customers, on Azure demand.
Key takeaways
- Azure revenue was $33.2 billion for the quarter, up 48%, ahead of the $32.3 billion analysts expected.
- Total Microsoft revenue was a record $92.3 billion.
- About $10 billion came from OpenAI arrangements, nearly 11% of revenue; fiscal 2026’s total was $24.1 billion.
- Microsoft’s OpenAI stake slipped from about 25% to 24% between June and September.
- Google Cloud reported $30.7 billion the same day, and Amazon follows on Thursday.
Frequently asked questions
How much did Azure earn in the latest quarter?
Azure generated $33.2 billion in the July–September 2026 quarter, up 48% from a year earlier. It is the first time Microsoft has reported the figure in dollars.
How much revenue does Microsoft get from OpenAI?
Microsoft reported about $10 billion for the quarter from its commercial arrangements with OpenAI, including revenue sharing. The filing does not say how that splits between revenue share and cloud services.
Does Microsoft still own a quarter of OpenAI?
Almost. Its stake was about 24% in September 2026, down from about 25% in June, though Microsoft did not explain the change.
