Microsoft reported $92.3 billion in revenue for the quarter, up 19% from the year-ago quarter. It was the company’s 10th consecutive quarter with record-breaking revenue, and net income reached $36.6 billion, up 32% on a GAAP basis.
Cloud revenue led the quarter
Microsoft Cloud generated $63.9 billion in revenue, a 30% increase from the year-ago quarter. The figure highlights the scale of the company’s cloud business, though the source does not attribute all of that growth to artificial intelligence.
Azure contributed $33.2 billion, while Microsoft 365 accounted for nearly $28 billion. Azure hosts traditional software and software-as-a-service applications as well as AI services, so its revenue cannot be read as an AI-only measure.
The distinction matters when assessing how much AI is driving Microsoft’s results. Cloud revenue includes several business lines, and the reported totals combine AI-related activity with established products and services.
AI customers add to the cloud story
Microsoft reported $10 billion in revenue from OpenAI. OpenAI has expanded to AWS, Oracle and other providers, but still runs many of its services on Microsoft’s cloud. The source also says Anthropic runs on Azure.
Microsoft reported that its “commercial r emaining performance obli gation increased 73% to $677 billion.” This represents future revenue committed under existing contracts, including those with AI labs. The figure points to contracted business ahead, though fulfilling those commitments will require the company to keep investing in the capacity and infrastructure behind its cloud services.
Not every segment moved up
Microsoft has reorganized its business reporting into two segments: Agents and Infra, and Devices and Consumer. Results differed between them: revenue in Devices and Consumer was $15.5 billion, a decrease of 3%.
Windows OEM and devices revenue fell 22% from the year-ago quarter. That decline contrasts with growth in Microsoft Cloud and shows that the quarter’s record total did not mean every part of the business expanded.
Preparing to meet future demand
Microsoft’s strong cloud results and contracted future revenue come with substantial spending to support delivery. Capital expenditures topped $45.2 billion, another all-time quarterly record.
That spending puts two sides of the results in view: growing revenue and a large pipeline of committed work, alongside the investment required to serve it. The quarter’s figures show Microsoft benefiting from cloud and AI demand while continuing to build for expected future commitments.