Analyst: Microsoft’s cloud computing business is ahead of expectations with $90 billion in revenue in fiscal 2030

Analysts expect Microsoft’s cloud computing business, Azure, to grow rapidly in the coming years, making it its largest revenue business in fiscal 2023 and $90 billion in fiscal 2030, according tomedia reports. Microsoft’s cloud computing business, Azure, is expected to grow rapidly over the next few years, said Brad Reback, an analyst at Stifel Nicolaus.

Analyst: Microsoft's cloud computing business is ahead of expectations with $90 billion in revenue in fiscal 2030

In a report on Monday local time, Brad Riebuck said Microsoft’s cloud computing Azure was bigger than the outside world had imagined, with annual revenue of $17 billion.

Brad Riebuck noted in his report that Microsoft’s cloud computing business has great potential, that potential customers are still in the early stages of moving computing to the cloud, with less than 10 percent penetration and more than the $10 billion contract it recently acquired.

According to Brad Riebuck’s model, Microsoft’s cloud computing business, Azure, is expected to generate $12.4 billion in revenue for the fiscal year ended June 30, rising to $26.7 billion in fiscal 2021, $35.2 billion in fiscal 2022 and $90 billion in fiscal 2030.

The rapid increase in revenue from the cloud computing business will also increase the weight of the business within Microsoft. In his report, Brad Riebuck points out that the cloud computing business, Azure, will outstrip Office, Windows, Servers and Tools in Fiscal Year 2023.

Brad Riebuck’s target price for Microsoft shares is $160, up from $150.34 at Monday’s close, based on expectations of rapid growth in the cloud computing business Azure.

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