Microsoft reports $33.2B Azure revenue and $10B from OpenAI in Q3 2026

Microsoft disclosed for the first time that its Azure cloud platform generated $33.2 billion in revenue during the July-September quarter of 2026, according to TechCrunch. This represents a 48% increase from the previous year and positions Azure slightly ahead of Google Cloud, which earned $30.7 billion in the same period.

Azure accounted for about 36% of Microsoft's total quarterly revenue of $92.3 billion, making it the company's largest and fastest-growing product line. The revenue also exceeded analyst expectations by approximately $850 million, with growth surpassing prior forecasts.

In addition, Microsoft reported $10 billion in revenue from commercial arrangements with OpenAI during the same quarter, representing nearly 11% of its total revenue. This includes revenue-sharing payments and highlights the significant financial relationship between the two companies.

For the full fiscal year 2026, Microsoft earned $24.1 billion from OpenAI-related business, and at the current pace, annual revenue from OpenAI arrangements could reach $40 billion. Microsoft also noted $7.2 billion in outstanding receivables from OpenAI as of September 30.

The partnership between Microsoft and OpenAI remains financially important despite increasing competition between the two. Details on the breakdown of revenue sources from OpenAI, such as revenue-sharing versus Azure cloud services, were not specified.

Microsoft's Azure revenue is now reported within the newly formed Agents and Infra business segment, which combines Azure with Microsoft 365's cloud business, reflecting the company's evolving organizational structure.