Yesterday, Microsoft announced the financial results for the quarter ended September 30, 2021. For the first time, Microsoft Cloud generated $20.7 billion in revenue for the quarter, up 36% year over year, ahead of expectations. Microsoft Cloud includes Azure and other cloud services, Office 365 Commercial, commercial business of LinkedIn, Dynamics 365 and other cloud services. Microsoft also reported that gross margin percentage of Microsoft Cloud was 71%.

Excluding the impact from the change in accounting estimate for the useful life of server and network equipment assets, Microsoft cloud gross margin percentage increased roughly 4 points driven by improvement in our cloud services, particularly in Azure and Office 365, partially offset by sales mix shift to Azure.

Source: Microsoft