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Azure Surpasses $75 Billion in Revenue, Challenging AWS Dominance
31 Jul
Summary
- Microsoft's Azure cloud unit surpassed $75 billion in revenue last year
- Azure's 34% growth outpaces Amazon Web Services' 18% increase
- Microsoft's market valuation reaches $4 trillion for the first time
On August 1st, 2025, Microsoft made a significant announcement that has shaken up the cloud computing industry. The tech giant revealed that its Azure cloud unit surpassed $75 billion in revenue during the company's most recent fiscal year, representing a remarkable 34% growth.
This news marks a major shift in the cloud computing landscape, as Azure's performance has now allowed Microsoft to more directly challenge the industry's long-standing leader, Amazon Web Services (AWS). In comparison, AWS generated $116.5 billion in revenue over the past 12 months, but its growth rate was a more modest 18%.
The strong Azure performance has also had a tangible impact on Microsoft's overall valuation, with the company's market capitalization reaching $4 trillion for the first time. This milestone underscores the growing importance of cloud computing to Microsoft's business and the confidence investors have in the company's ability to compete with AWS.
While Amazon maintains a clear lead in market share, with 30% compared to Microsoft's 20%, the gap is narrowing as Azure continues to post higher growth rates. Industry analysts note that Microsoft and Google are both achieving stronger growth in the cloud sector, though AWS still holds the dominant position.
