Microsoft’s cloud business delivered another strong quarter as the company reported results on 28 October for the three months ended 30 September. Revenue rose 19% to $92.3 billion, while operating income increased 21% to $45.9 billion.
Azure revenue grew 48%. Microsoft Cloud generated $63.9 billion, up 30%, while the Agents and Infra segment produced $76.8 billion, an increase of 25%. The figures show business software and infrastructure carrying much of the group’s growth.
The contrast is visible in Devices and Consumer, where revenue fell 3% to $15.5 billion. Windows OEM and devices revenue declined 22%, and Xbox content and services fell 2%. The consolidated result therefore masks different conditions across the portfolio.
Net income was $36.6 billion under standard accounting rules. Excluding the impact of investments in OpenAI, the adjusted figure was $36.4 billion. The corresponding growth rates — 32% reported and 18% adjusted — use different bases, so neither should be substituted for the other.
The company generated $18.6 billion in free cash flow, a stronger outcome than analysts had expected. Its commercial remaining performance obligations reached $677 billion. That backlog indicates contracted business still to be recognised; it is not cash already earned in the quarter.
The broader issue is whether the AI infrastructure boom can finance its own expansion. Strong cloud sales support Microsoft’s investment case, but future contracts still have to become delivered services and recognised revenue. Forecasts for the following quarter remain expectations rather than completed results.
