When it comes to headline revenue numbers, Amazon (AMZN) leaves Microsoft (MSFT) in the dust. But a closer look at the past two years reveals a less obvious truth: Microsoft’s growth is smoother, its profits are far fatter, and its cloud business is catching up fast.
In the quarter ending December 2025, Amazon booked $213.4 billion in revenue. Microsoft’s take? $81.3 billion. That puts Amazon’s top line at nearly three times its rival’s. The gap isn’t new. Go back eight quarters: Amazon’s revenue has consistently towered over Microsoft’s, from $143.3 billion vs. $61.9 billion in early 2024 to $180.2 billion vs. $77.7 billion by late 2025.
But revenue size isn’t everything.
Amazon’s numbers swing wildly. In the fourth quarter of 2024, its revenue jumped nearly 18% from the previous quarter, hitting $187.8 billion, only to drop to $155.7 billion three months later. That’s the holiday effect – e-commerce spiking in Q4, then cooling off.
Microsoft barely flinches. Its revenue has climbed steadily from $61.9 billion in Q1 2024 to $81.3 billion in Q4 2025, with no dramatic leaps or drops. The reason? Enterprise software subscriptions and cloud contracts, which recognize revenue predictably month after month or year after year.
Microsoft’s net income margin for the quarter ended Dec. 31, 2025: roughly 47%. Amazon’s: under 10%. For every $100 in revenue, Microsoft keeps $47. Amazon keeps less than $10.
And while Amazon’s overall business is still growing, Microsoft is now growing faster. In that same December quarter, Microsoft’s year-over-year revenue growth hit 17%, topping Amazon’s 14%. Over the past three years, Microsoft has consistently outpaced Amazon in growth rate.
AWS remains the cloud king, with nearly $129 billion in annual revenue. But Microsoft Azure is gaining ground fast. Last quarter, Azure grew 39% year over year – a full 15 percentage points higher than AWS’s 24%.
If that pace holds, Microsoft will slowly shrink Amazon’s lead in the cloud. And because AI tools are being deployed largely through cloud infrastructure, this race is also a proxy for which company is better positioned to cash in on AI demand.
Forget the simple question – “Who has more revenue?” The real question is whether the gap between these two will keep widening or start to close.
Amazon has the bigger e-commerce engine and a powerful cloud base. Its Q4 spikes will continue to impress. But Microsoft has higher margins, a steadier revenue stream, and a cloud business growing much faster. It’s taking the slower, more predictable path – and it’s working.
Watch Azure vs. AWS growth rates. Watch how each company’s overall year-over-year revenue compares over the next few quarters. Those numbers will tell you who’s really winning.
