Microsoft vs. Amazon: Comparing Consistent Revenue Growth in Tech Giants
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By John Ballard – Apr 29, 2026 at 4:04PM ESTKey PointsAmazon consistently generates a significantly higher volume of total revenue than Microsoft across the periods reviewed.Both companies demonstrated a steady upward trend in revenue, with Amazon displaying more quarter-over-quarter volatility compared to Microsoft's generally smoother trajectory.Investors should watch whether the revenue gap between the two companies continues to widen or if the growth rates begin to align in upcoming quarters.Microsoft (MSFT 1.19%) and Amazon (AMZN +1.10%) generate revenue from different businesses, but they clash head-to-head in the cloud computing market. While Amazon benefits from a larger scale, including the cloud market, Microsoft is consistently growing its revenue faster. The software giant also generates significantly higher margins and smoother quarter-to-quarter revenue. Microsoft: A Steady Revenue TrajectoryMicrosoft primarily generates revenue by developing, licensing, and supporting software, devices, and cloud computing solutions for consumers and enterprises worldwide.It has posted strong growth in cloud services, with Microsoft Cloud revenue up 26% year over year in the fiscal second quarter. It also recently ended its exclusive rights to host OpenAI models in April 2026, while reporting a net income margin of about 47% for the quarter ended Dec. 31, 2025.ExpandNASDAQ: MSFTMicrosoftToday's Change(-1.19%) $-5.10Current Price$424.15Key Data PointsMarket Cap$3.2TDay's Range$420.31 - $426.7852wk Range$356.28 - $555.45Volume1.5MAvg Vol38MGross Margin68.59%Dividend Yield0.81%Amazon: Higher Total Revenue With Seasonal ShiftsAmazon earns revenue from the retail sale of consumer products in online and physical stores, as well as from subscription programs and extensive cloud computing services.It announced a definitive merger agreement to acquire Globalstar. This will enable Amazon’s satellite internet service to launch direct-to-device services. It also recently outlined plans to expand same-day prescription delivery in early 2026. The company’s net income margin was just under 10% for the quarter ended Dec. 31, 2025.ExpandNASDAQ: AMZNAmazonToday's Change(1.10%) $2.85Current Price$262.55Key Data PointsMarket Cap$2.8TDay's Range$257.72 - $265.9152wk Range$178.85 - $265.91Volume2.9MAvg Vol52MGross Margin50.29%Why Revenue Matters for Retail InvestorsRevenue is the most fundamental metric to evaluate a company’s performance. Changes over time indicate how easy it is to expand operations and reach new customers. This alone can reveal important insights about a company’s long-term return potential to investors. Image source: The Motley Fool. Quarterly Revenue for Microsoft and Amazon.comQuarter (Period End)Microsoft RevenueAmazon.com RevenueQ1 2024 (March 2024)$61.9 billion$143.3 billionQ2 2024 (June 2024)$64.7 billion$148.0 billionQ3 2024 (Sept. 2024)$65.6 billion$158.9 billionQ4 2024 (Dec. 2024)$69.6 billion$187.8 billionQ1 2025 (March 2025)$70.1 billion$155.7 billionQ2 2025 (June 2025)$76.4 billion$167.7 billionQ3 2025 (Sept. 2025)$77.7 billion$180.2 billionQ4 2025 (Dec. 2025)$81.3 billion$213.4 billionData source: Company filings. Data as of April 28, 2026.Foolish TakeAmazon’s revenue is nearly three times Microsoft’s, but Microsoft has posted higher year-over-year growth over the past three years. Amazon generates revenue across a range of businesses, including e-commerce, advertising, fulfillment services, and cloud services. In the cloud, Amazon leads, with nearly $129 billion in annual revenue from Amazon Web Services.Microsoft is primarily selling office software and cloud services to businesses and consumers. It generates much less revenue, but it is growing consistently faster. In the December-ending quarter, Microsoft posted a 17% year-over-year revenue increase, outpacing Amazon’s 14%.Where these companies compete head-to-head is in the cloud, and Microsoft is steadily eroding Amazon’s lead. Revenue from Microsoft Azure grew 39% year over year last quarter, significantly outpacing Amazon Web Services’ 24%.Investors should watch how these companies’ growth continues to evolve in the coming quarters. Microsoft’s faster-growing cloud business could help it narrow the gap. The cloud market is where companies are engaging with artificial intelligence (AI) tools, so the relative market shares and growth rates between these competitors could say a lot about which one is better positioned to capitalize on AI demand.Read NextApr 29, 2026 •By Bram BerkowitzMicrosoft Reports Earnings After the Bell: Here Are the 3 Biggest Questions I HaveApr 29, 2026 •By Keithen DruryIs Microsoft the Greatest Bargain in Tech?Apr 29, 2026 •By Lyle DalyWhat is NFT Worlds?Apr 29, 2026 •By Matt Frankel, CFPS&P 500 Explained: How the Index Works and How to Invest in ItApr 29, 2026 •By Rachel WarrenHow to Buy Alibaba Stock (BABA) in 2026Apr 29, 2026 •By Anders BylundBest Quantum Computing Stocks to Buy in 2026 and How to Invest in ThemAbout the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedMicrosoftNASDAQ: MSFT$424.15(-1.19%)-$5.10AmazonNASDAQ: AMZN$263.04(+1.29%)+$3.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.