Microsoft boosts Azure revenue by 48% to $33.17 billion — Channel NewsAsia

US corporation Microsoft, based in Redmond, Washington, reported a 48% increase in quarterly revenue from its Azure cloud business to $33.17 billion in the first quarter ended in September. The figure exceeded Visible Alpha’s forecast of $32.84 billion, Channel NewsAsia reports.

Azure results exceed forecast

In the previous quarter, Azure revenue amounted to $29.4 billion. Last month, Microsoft began disclosing the revenue of its cloud division in dollar terms rather than only its growth rate. This makes it possible to compare Azure’s results more clearly with Amazon Web Services and Google Cloud.

After the report was released, Microsoft shares rose by around 4% in after-hours trading. From the start of the year through the close of trading on Wednesday, the company’s stock had gained about 9%.

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AI infrastructure spending

Microsoft’s capital expenditures for the quarter totaled $45.2 billion, compared with $34.9 billion a year earlier. The company had forecast capital expenditures of $50 billion in the first quarter. Free cash flow reached $18.6 billion, while Visible Alpha analysts had expected $8.54 billion.

Microsoft had previously forecast capital expenditures of $190 billion in 2026. Major technology companies overall, according to estimates cited in the report, are expected to allocate more than $700 billion this year to building data centers, equipment and energy resources for the development and operation of artificial intelligence technologies.

Truist analysts believe that Microsoft’s strong balance sheet gives it an advantage over competitors amid rising AI costs. In their assessment, the company’s five-year credit default swaps remain the lowest among technology giants. Microsoft is also the only major cloud provider expected to generate positive cash flow next year.