Microsoft's annual cloud revenue hits $75B, profit beats expectations

Microsoft said Wednesday that annual revenue for its flagship Azure cloud computing platform has surpassed $75 billion, up 34% from a year earlier.

The Azure cloud business is a centerpiece of Microsoft's efforts to shift its focus to artificial intelligence, but until Wednesday the company hadn't disclosed how much money it makes.

The revelation came in the software giant's end-of-year earnings report, one that also showed a 24% spike in the company's quarterly profit that beat Wall Street expectations and pleased investors wary about Microsoft's ongoing construction of costly new data centers needed to meet cloud computing and AI demand.

“We continue to scale our own data center capacity faster than any other competitor,” CEO Satya Nadella said on an investor call, boasting that the company now has more than 400 of the sprawling facilities across six continents.

Microsoft's fiscal fourth-quarter profit was $34.3 billion, or $3.65 per share, beating analyst expectations for $3.37 per share.

It posted revenue of $76.4 billion in the April-June period, up 18% from last year. Analysts polled by FactSet Research had been looking for revenue of $73.86 billion.

Microsoft launched Azure more than a decade ago, but the service has increasingly become intertwined with its AI ambitions, as the company looks to sell its AI chatbot and other tools to big business customers that are also reliant on its core online services.

It still trails behind its lead competitor, Amazon Web Services, which reported $107.6 billion in revenue for its fiscal year that ended in December.

Building the infrastructure to power cloud and AI technology is expensive, and Microsoft has looked for savings elsewhere. It announced layoffs of about 15,000 workers this year even as its profits have soared.

Nadella told employees last week the layoffs were “weighing heavily” on him but also positioned them as an opportunity to reimagine the company’s mission for an AI era.

Still, the overall workforce numbers haven't changed. The company said it employed 228,000 full-time employees as of June 30, the exact same amount it reported a year ago, though slightly more of them are now U.S.-based and fewer of them are in product support roles or consulting services.

Promises of a leaner approach have been welcomed on Wall Street, especially as Microsoft and other tech giants are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.

Google said after releasing its earnings last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft's chief financial officer, Amy Hood, said she expects capital spending for the July-September quarter to be $30 billion.

Microsoft didn't disclose Wednesday to what extent sweeping U.S. tariffs are affecting its revenue, but its annual report lists tariffs among a number of risks the company faces.

“Increased geopolitical instabilities and changing U.S. administration priorities create an unpredictable trade landscape,” the company said. It also said the "volatility of U.S. tariffs has triggered economic uncertainty and could impact cloud and devices supply chain cost competitiveness."

FILE - A Microsoft sign and logo are pictured at the company's headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP Photo/Jason Redmond, File)

RIO DE JANEIRO (AP) — A Brazilian Supreme Court Justice on Thursday ordered the transfer of former President Jair Bolsonaro from the federal police headquarters in Brasilia to a much bigger cell with an outside area in the Papuda Penitentiary Complex, also in the capital.

The transfer was described as a move to a facility with “more favorable conditions” for high-profile detainees.

Since November, Bolsonaro has been carrying out a 27-year prison sentence for attempting a coup despite his 2022 electoral defeat. His lawyers have been pushing for a transfer to house arrest on medical grounds.

Michelle Bolsonaro, his wife, and his sons have regularly said that Bolsonaro is being mistreated and not getting adequate medical attention.

In the court decision, Justice Alexandre de Moraes denied the accusations. “Regrettably and falsely, there has been a systematic attempt to delegitimize the regular and lawful execution of the custodial sentence of Jair Messias Bolsonaro, which has been carried out with full respect for human dignity."

Bolsonaro had been in a 12-square-meter room with a bed, a private bathroom, air conditioning, a TV set and a desk, and Moraes ordered Bolsonaro's transfer to an even more comfortable situation. He determined that Bolsonaro be transferred to a 54-square-meter room with a 10-square-meter outside area that he can access at will.

Following the transfer, Bolsonaro will also have increased time for family visits and physiotherapy equipment such as a treadmill and bicycle will be installed. The new area resembles an apartment, with a double bed, a kitchen, a laundry, a living room and an outdoor area.

The Supreme Court’s press office said the transfer had already happened.

Since starting his sentence, Bolsonaro has made several trips to a nearby hospital, most recently after falling out of bed and hitting his head.

Moraes decided that Bolsonaro can have “full assistance, 24 (twenty-four) hours a day, from previously registered private doctors, without the need for prior notification.”

Moraes also ordered a medical examination to assess Bolsonaro's health and determine whether he needs to be transferred to a penitentiary hospital.

Bolsonaro has been hospitalized multiple times since being stabbed at a campaign event before the 2018 presidential election.

The former president and several of his allies were convicted by a panel of Supreme Court justices for attempting to overthrow Brazil’s democracy following his 2022 election defeat.

The plot included plans to kill President Luiz Inácio Lula da Silva, Vice President Geraldo Alckmin and Justice de Moraes. The plan also involved encouraging an insurrection in early 2023.

The former president was also found guilty of charges including leading an armed criminal organization and attempting the violent abolition of the democratic rule of law.

Bolsonaro has always denied wrongdoing.

In Thursday’s court order, Moraes said that Bolsonaro was convicted of extremely serious crimes and that his custodial sentence was not a “hotel stay or a vacation colony” as statements from Bolsonaro’s sons’ cited in the decision “mistakenly seem to demand.”

FILE - Brazil's former President Jair Bolsonaro stands at the entrance of his home while he is under house arrest in Brasilia, Brazil, Sept. 2, 2025. (AP Photo/Luis Nova, File)