Microsoft Surpasses $42 Billion in Cloud Revenue, Drives Innovation in Quantum Computing and AI
Microsoft has wrapped up its strongest quarter yet, with the tech giant's cloud revenue surpassing $42 billion in the third quarter of 2025. The company's Chairman and Chief Executive Officer, Satya Nadella, highlighted the continued strength of Microsoft Cloud during a recent conference call, citing the essential role it plays in driving business growth.
"We continue to expand our data center capacity, with new centers opening in 10 countries across four continents this quarter alone," Nadella said. "Our model capabilities are doubling in performance every six months, thanks to multiple compounding scaling laws." This focus on efficiency and innovation has led to significant improvements in Microsoft's supply chain, with dock-to-lead times for new GPUs reduced by nearly 20% and AI performance increased by nearly 30% at half the cost.
The company's cloud migration business is also experiencing rapid growth, with customers from various industries, such as Abercrombie & Fitch, Coca-Cola, and ServiceNow, expanding their footprints on Azure. Microsoft remains the cloud of choice for customers' mission-critical workloads, including VMware, SAP, and Oracle, thanks to its unparalleled regional availability.
Microsoft is also making significant strides in quantum computing with the introduction of Majorana 1, a key milestone on the path to a utility-scale quantum computer. The company's Quantum platform has made real progress, enabling customers to explore new applications and drive innovation in fields such as chemistry and materials science.
In addition to its work in quantum computing, Microsoft is also deeply integrating its AI platform with its data stack. PostgreSQL usage accelerated for the third consecutive quarter, with nearly 60% of Fortune 500 companies, including BMW and BNY Mellon, utilizing the platform. Cosmos DB revenue growth also accelerated again this quarter, solidifying its position as the go-to database for globally distributed NoSQL workloads at any scale.
Microsoft's success in these areas is a testament to the company's commitment to innovation and customer satisfaction. As the tech landscape continues to evolve, Microsoft remains a leader in cloud computing, AI, and quantum computing.
