Azure Surpasses $100B Revenue Milestone, Powered by AI Growth

Microsoft's Azure cloud platform has reached an annual revenue milestone of $100 billion for the first time, and artificial intelligence is fueling its growth. The company's overall Cloud segment pulled in $54.5 billion in a single quarter, marking a 29% year-over-year increase. Azure and related cloud services grew even faster, clocking 40% year-over-year growth.

For context, Azure was running at about a $75 billion annual pace just a year ago, with quarterly cloud revenue of $46.7 billion (up 27% at the time). Microsoft's AI business hit a $37 billion annualized run rate in fiscal Q3 2026, a 123% increase compared to the prior year.

A notable deal that illustrates the scale of capital flowing into AI cloud infrastructure is the $9.7 billion AI cloud agreement signed by Microsoft with IREN (a company previously operated as a Bitcoin miner) in November 2025. This includes $5.8 billion worth of GPUs sourced from Dell, highlighting the significant investment in AI infrastructure.

Azure's relationship with crypto is complicated; it retired its dedicated Azure Blockchain Service back in September 2021 to focus on general-purpose cloud infrastructure that can support blockchain applications alongside other services.