Microsoft discloses Azure revenue for the first time
Azure's quarterly revenue announced at $29.4 billion
1First disclosure of Azure revenue
Microsoft has reported Azure cloud service revenue in dollar figures for the first time. In the June quarter, Azure revenue grew 42% to $29.42 billion, representing approximately 33% of Microsoft's total revenue. The company transitioned from a three-segment reporting structure in place since 2015 to a new two-segment model. This change provides clearer visibility into Azure's financial performance.
2Narrowing Azure's definition
Microsoft has refined Azure's scope by excluding certain services from this category. GitHub cloud services, developer cloud services, Security Copilot assistant, and healthcare life sciences products are no longer included in Azure revenue. CEO Satya Nadella described Azure as 'more purely our consumption-based platform and infrastructure business.' This refined definition aligns with the EU's regulatory boundaries under the Digital Markets Act.
3EU's gatekeeper investigation
The European Commission launched market investigations into AWS and Azure in November 2025. The probe examines whether these cloud services should be designated as 'gatekeepers' under the Digital Markets Act. The Commission noted that cloud infrastructure doesn't meet DMA's automatic thresholds, requiring manual assessment. The investigation is being conducted in collaboration with the Dutch competition authority.
4Gatekeeper designation process
In June, the EU Commission preliminarily found that both AWS and Azure should be designated as gatekeepers. This designation would impose interoperability requirements, restrict self-preferencing, and limit customer lock-in practices. Non-compliance could result in fines up to 10% of global turnover, increasing to 20% for repeated violations. A final decision is expected before year-end, coinciding with Microsoft's first Azure revenue disclosure.
5Significance of revenue disclosure
Microsoft's disclosure of Azure revenue carries critical importance for the EU's gatekeeper assessment. While Amazon has reported AWS revenue since 2015, Microsoft previously only shared growth rates. The lack of revenue figures complicated the Commission's evaluation process. The timing of Azure's first official revenue figure aligns with the expected final decision from EU regulators in the same quarter.
6Segmentation restructuring
Microsoft's new reporting structure features two main segments: 'Agents and Infra' and 'Devices and Consumer.' This reorganization took months to prepare and aims to provide clearer insight into Azure's performance. Analysts estimate that about half of Azure's growth in fiscal 2026 came from OpenAI. The restructuring reflects Microsoft's effort to better communicate its cloud business dynamics to investors.
7Political risk in Europe
Azure's position in the European market is increasingly viewed as a political risk. The EU's gatekeeper designation process could significantly impact Microsoft's operations in the region. As regulatory pressure on cloud services intensifies, Microsoft's quarterly revenue disclosures will provide greater transparency. These developments may prompt tech giants to reshape their European business strategies.
8Industry inflection point
Microsoft's disclosure of Azure revenue marks a significant inflection point for the cloud computing industry. The EU's gatekeeper decision combined with Microsoft's transparency move could alter competitive dynamics. Increasing regulatory scrutiny of cloud services will force tech giants to reconsider their business models. These developments may have long-term implications for both investors and customers in the technology sector.
Original article: The Next Web — Microsoft Azure gelirini ilk kez açıkladı