Microsoft’s cloud growth contrasts with a sharp Windows and devices decline

Microsoft’s latest quarterly results show a widening contrast between its cloud business and its PC-facing operations. According to TechCrunch’s October 28 report, quarterly revenue reached $92.3 billion, up 19% from a year earlier, while Windows OEM and devices revenue fell 22%.

The company also reported net income of $36.6 billion, a 32% year-over-year increase on a GAAP basis. TechCrunch described the results as Microsoft’s tenth consecutive quarter of record-breaking revenue.

Windows faces a different trajectory

For readers following the PC market, the Windows and devices decline is the clearest consumer-facing figure in the report. Revenue across Microsoft’s Devices and Consumer segment totaled $15.5 billion, down 3% from the comparable quarter a year earlier.

Those figures describe different scopes: the 22% decline applies specifically to Windows OEM and devices, while the smaller decrease covers the broader segment. They should not be treated as interchangeable measures of Microsoft’s consumer business.

Cloud revenue and spending climb

Microsoft Cloud revenue reached $63.9 billion, increasing 30% year over year, according to the figures reported by TechCrunch. Azure contributed $33.2 billion, while Microsoft 365 accounted for nearly $28 billion.

The report also cited $10 billion in revenue from OpenAI. However, it cautioned against attributing all cloud growth to artificial intelligence: Azure also hosts traditional enterprise software and software-as-a-service applications.

Microsoft’s investment in infrastructure continued alongside that growth. Quarterly capital expenditures topped $45.2 billion, which TechCrunch reported as another company record.

For PC and technology readers, the central takeaway is the divergence within Microsoft’s results: strong overall revenue growth accompanied a substantial decline in Windows OEM and devices revenue.