Microsoft vs Amazon 2026: Growth vs Scale
Microsoft grows faster overall (18% YoY revenue growth vs Amazon's 13%) with superior profit margins (47% net income margin), while Amazon dominates cloud market share through AWS ($129B annual revenue vs Microsoft Azure's estimated $80B+). Microsoft is the better growth stock; Amazon leads in cloud infrastructure scale.
Microsoft Corporation
Multinational technology corporation providing operating systems, productivity software, cloud services, and enterprise solutions.
Growth-focused investors seeking consistent profitability, enterprises adopting cloud and AI solutions, and portfolios prioritizing software/services expansion.
Amazon.com Inc.
Global e-commerce and cloud services company with 2.1 trillion USD market cap offering millions of products with fast shipping.
Value investors seeking exposure to dominant cloud infrastructure, e-commerce growth, and advertising expansion; portfolios wanting diversified tech exposure beyond software.
Quick Answer
AI SummaryMicrosoft grows faster overall (18% YoY revenue growth vs Amazon's 13%) with superior profit margins (47% net income margin), while Amazon dominates cloud market share through AWS ($129B annual revenue vs Microsoft Azure's estimated $80B+). Microsoft is the better growth stock; Amazon leads in cloud infrastructure scale.
Our Verdict
AI-assistedChoose Microsoft if you value consistent growth, higher profitability, and AI-driven software/cloud expansion with lower capital intensity. Choose Amazon if you prefer established cloud infrastructure dominance, diversified revenue streams (e-commerce, advertising), and long-term AI infrastructure plays despite lower margins. Both are strong 2026+ investments, but Microsoft offers better near-term growth momentum.
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Choose Microsoft Corporation if
Best pickGrowth-focused investors seeking consistent profitability, enterprises adopting cloud and AI solutions, and portfolios prioritizing software/services expansion.
Choose Amazon.com Inc. if
Value investors seeking exposure to dominant cloud infrastructure, e-commerce growth, and advertising expansion; portfolios wanting diversified tech exposure beyond software.
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Key Differences at a Glance
- Cloud Revenue Growth Rate:✓ Microsoft Corporation wins(Microsoft Cloud +26% YoY vs AWS +20% YoY)
- Net Income Margin:✓ Microsoft Corporation wins(Microsoft 47% vs Amazon ~9.6% (Q3 2025))
- Overall Revenue Growth Rate:✓ Microsoft Corporation wins(Microsoft 18% YoY vs Amazon 13% YoY)
Key Facts & Figures
59 numeric metrics compared
| Metric | Microsoft Corporation | Amazon.com Inc. | Ratio |
|---|---|---|---|
| Enterprise Product Innovation Rating(Stars out of 5) | 5.0★ | — | — |
| Enterprise Product Innovation Review Count(Reviews) | 2,218 reviews | — | — |
| Application Development Platform Rating(Stars out of 5) | 4.4★ | — | — |
| Application Development Review Count(Reviews) | 598 reviews | — | — |
| 3-Year Revenue Growth Rate(Percent) | 44% increase | — | — |
| Enterprise Integration Capabilities Rating(Stars out of 5) | 5.0★ | — | — |
| Overall Revenue Growth Rate(%) | 18% YoY | 13% YoY | |
| Cloud Revenue Growth Rate(%) | Microsoft Cloud +26% YoY | AWS +20% YoY | |
| Azure Cloud Growth Rate(%) | Azure +40% YoY | N/A | — |
| AWS Annual Revenue(USD Billions) | Azure estimated $80B+ | AWS $129B | |
| Net Income Margin(%) | Microsoft 47% | Amazon ~9.6% | |
| Q3 Operating Income(USD Billions) | Not disclosed | Amazon $17.4B | — |
| Advertising Revenue Growth(%) | Not disclosed | Amazon +24% YoY | — |
| Microsoft Cloud Total Revenue(USD Billions) | $49.1B | N/A | — |
| Market Capitalization(USD trillions) | $2.9T | — | — |
| AI Infrastructure Capex Investment(USD Billion) | $29.88 billion | — | — |
| Cloud Platform Growth Rate(Percent Year-over-Year) | 39% (Azure) | — | — |
| Commercial Remaining Performance Obligations(USD Billion) | $625 billion | — | — |
| 10-Year Stock Return(Percent) | 650% | — | — |
| Trailing 12-Month Revenue Growth (3-Year Period)(Percent) | 44% | — | — |
| Desktop OS Market Share(%) | 92% | — | — |
| Web Server Adoption (Top 1M Sites)(%) | 3.7% | — | — |
| Windows Home Edition Price(USD) | $139 | — | — |
| Enterprise Support Cycle Length(years) | 10-13 years | — | — |
| Annual Company Revenue (FY2024)(billion USD) | $245 billion | — | — |
| Cloud Market Share(%) | 23% (Azure) | 32% (market leader) | |
| Gaming Compatibility(% of Steam games) | 93% | — | — |
| Operating Profit Margin(%) | 44.2% | — | — |
| CRM Market Share(%) | 8.2% | — | — |
| Enterprise Customer Base(Organizations) | 60,000+ | — | — |
| Enterprise CRM License Cost(USD per user per month) | $100-$165 | — | — |
| Annual R&D Investment(billion USD) | $27.2B | — | — |
| Net Revenue Retention Rate(%) | 102% | — | — |
| Search Market Share(%) | 3% | — | — |
| Cloud Platform Market Share(%) | 23% | — | — |
| Annual Revenue(USD billions) | $245.1B | — | — |
| Enterprise Software Subscribers(millions) | 382M (Microsoft 365) | — | — |
| AI Assistant Monthly Active Users(millions) | 20M+ (Copilot) | — | — |
| Operating System Market Share(%) | 72% | — | — |
| Fortune 500 Primary Software Usage(%) | 90% | — | — |
| Annual Revenue/Total Cost of Ownership(USD) | $139-$199 per device (Windows license alone) | — | — |
| Desktop Operating System Market Share(%) | 72% | — | — |
| Server Operating System Market Share(%) | 30% | — | — |
| Global Website Server Usage(%) | 3.7% (includes IIS) | — | — |
| Average CVEs Per Year (Last 5 Years)(vulnerabilities) | 97 (Windows 10, 2016-2020) | — | — |
| Security Patch Release Time(days) | 30 days (average after disclosure) | — | — |
| Long-Term Support Duration(years) | 10 years (Windows 10 extended) | — | — |
| AI Model Intelligence Score(score) | Nova Premier 1.0: 19.0 | Nova Premier 1.0: 19.0 | |
| AI Input Token Cost (per 1M tokens)(USD) | $2.50 | $2.50 | |
| Platform Review Rating(stars) | 4.2 stars | 4.2 stars | |
| Platform Review Count(reviews) | 205 reviews | 205 reviews | |
| Cheapest AI Model Input Cost(USD per 1M tokens) | Nova 2 Lite: $0.30 | Nova 2 Lite: $0.30 | |
| Average Product Price Index (Electronics)(% difference vs baseline) | -20% (average discount) | -20% (average discount) | |
| Physical Store Locations (USA)(locations) | 1 (Amazon Go/Fresh stores) | 1 (Amazon Go/Fresh stores) | |
| Standard Return Window(days) | 30 days | 30 days | |
| Annual Membership Cost(USD) | $139/year (Prime) | $139/year (Prime) | |
| Same-Day Service Coverage (USA)(metro areas / locations) | 70+ metro areas | 70+ metro areas | |
| Product SKU Count(products) | 350M+ products | 350M+ products | |
| Market Capitalization (2026)(USD Trillions) | $2.1 trillion | $2.1 trillion |
Sourced from publicly available data ·
Key Differences
7 attributes compared head-to-head
- Microsoft Cloud +26% YoY(winner)Cloud Revenue Growth RateAWS +20% YoY
- Microsoft 47%(winner)Net Income MarginAmazon ~9.6% (Q3 2025)
- Microsoft 18% YoY(winner)Overall Revenue Growth RateAmazon 13% YoY
- Microsoft Azure growing 40% YoYCloud Market Share LeadershipAWS leads with $129B annual revenue(winner)
- Not specified in dataQ3 Operating IncomeAmazon $17.4B total ($11.4B from AWS)(winner)
- Limited disclosureAdvertising Services GrowthAmazon +24% YoY(winner)
- Software, cloud, devices, AI servicesBusiness DiversificationE-commerce, cloud, advertising, logistics
- Cloud Revenue Growth Rate
Microsoft Corporation
Microsoft Cloud +26% YoY(winner)
Amazon.com Inc.
AWS +20% YoY
- Net Income Margin
Microsoft Corporation
Microsoft 47%(winner)
Amazon.com Inc.
Amazon ~9.6% (Q3 2025)
- Overall Revenue Growth Rate
Microsoft Corporation
Microsoft 18% YoY(winner)
Amazon.com Inc.
Amazon 13% YoY
- Cloud Market Share Leadership
Microsoft Corporation
Microsoft Azure growing 40% YoY
Amazon.com Inc.
AWS leads with $129B annual revenue(winner)
- Q3 Operating Income
Microsoft Corporation
Not specified in data
Amazon.com Inc.
Amazon $17.4B total ($11.4B from AWS)(winner)
- Advertising Services Growth
Microsoft Corporation
Limited disclosure
Amazon.com Inc.
Amazon +24% YoY(winner)
- Business Diversification
Microsoft Corporation
Software, cloud, devices, AI services
Amazon.com Inc.
E-commerce, cloud, advertising, logistics
Full Comparison
| Attribute | Microsoft Corporation | Amazon.com Inc. |
|---|---|---|
| Q4 2025 Net Income(USD Billions) | Not separately disclosed | — |
| 3-Year Revenue Growth Rate(Percent) | 44% increase | — |
| Market Capitalization(USD trillions) | $2.9T | — |
| Latest Quarterly Revenue(USD Billion) | Not disclosed in latest data | — |
| Operating Profit Margin(%) | 44.2% | — |
Show 1 more attributeAnnual Revenue(USD billions) $245.1B — | ||
| Enterprise Product Innovation Rating(Stars out of 5) | 5.0★ | — |
| Enterprise Product Innovation Review Count(Reviews) | 2,218 reviews | — |
| Enterprise Integration Capabilities Rating(Stars out of 5) | 5.0★ | — |
| Application Development Platform Rating(Stars out of 5) | 4.4★ | — |
| Application Development Review Count(Reviews) | 598 reviews | — |
| 2026 New Product Launches(Count) | Software updates and enhancements | — |
| Overall Revenue Growth Rate(%) | 18% YoY(winner) | 13% YoY |
| Cloud Revenue Growth Rate(%) | Microsoft Cloud +26% YoY(winner) | AWS +20% YoY |
| Azure Cloud Growth Rate(%) | Azure +40% YoY | N/A |
| AWS Annual Revenue(USD Billions) | Azure estimated $80B+ | AWS $129B(winner) |
| Microsoft Cloud Total Revenue(USD Billions) | $49.1B | N/A |
| Net Income Margin(%) | Microsoft 47%(winner) | Amazon ~9.6% |
| Q3 Operating Income(USD Billions) | Not disclosed | Amazon $17.4B |
| Advertising Revenue Growth(%) | Not disclosed | Amazon +24% YoY |
| AI Infrastructure Capex Investment(USD Billion) | $29.88 billion | — |
| Cloud Platform Growth Rate(Percent Year-over-Year) | 39% (Azure) | — |
| Commercial Remaining Performance Obligations(USD Billion) | $625 billion | — |
| iPhone Revenue (Latest)(USD Billion) | Not applicable | — |
| 10-Year Stock Return(Percent) | 650% | — |
| Trailing 12-Month Revenue Growth (3-Year Period)(Percent) | 44% | — |
| Desktop OS Market Share(%) | 92% | — |
| Web Server Adoption (Top 1M Sites)(%) | 3.7% | — |
| Windows Home Edition Price(USD) | $139 | — |
| Enterprise Support Cycle Length(years) | 10-13 years | — |
| Annual Company Revenue (FY2024)(billion USD) | $245 billion | — |
| Cloud Market Share(%) | 23% (Azure) | 32% (market leader)(winner) |
| CRM Market Share(%) | 8.2% | — |
| Search Market Share(%) | 3% | — |
| Desktop Operating System Market Share(%) | 72% | — |
| Server Operating System Market Share(%) | 30% | — |
Show 1 more attributeGlobal Website Server Usage(%) 3.7% (includes IIS) — | ||
| Gaming Compatibility(% of Steam games) | 93% | — |
| Enterprise Customer Base(Organizations) | 60,000+ | — |
| Net Revenue Retention Rate(%) | 102% | — |
| Enterprise CRM License Cost(USD per user per month) | $100-$165 | — |
| Average Product Price Index (Electronics)(% difference vs baseline) | -20% (average discount) | — |
| Annual Membership Cost(USD) | $139/year (Prime) | — |
| Annual R&D Investment(billion USD) | $27.2B | — |
| 2026 Major Infrastructure Updates | Graviton5 processors, S3 Vectors, Sovereign Cloud, service retirements | — |
| Cloud Platform Market Share(%) | 23% | — |
| Enterprise Software Subscribers(millions) | 382M (Microsoft 365) | — |
| AI Assistant Monthly Active Users(millions) | 20M+ (Copilot) | — |
| Operating System Market Share(%) | 72% | — |
| Fortune 500 Primary Software Usage(%) | 90% | — |
| Annual Revenue/Total Cost of Ownership(USD) | $139-$199 per device (Windows license alone) | — |
| Average CVEs Per Year (Last 5 Years)(vulnerabilities) | 97 (Windows 10, 2016-2020) | — |
| Security Patch Release Time(days) | 30 days (average after disclosure) | — |
| Long-Term Support Duration(years) | 10 years (Windows 10 extended) | — |
| Active Directory Integration(native support level) | Native and optimal | — |
| AI Model Intelligence Score(score) | Nova Premier 1.0: 19.0 | — |
| AI Input Token Cost (per 1M tokens)(USD) | $2.50 | — |
| Cheapest AI Model Input Cost(USD per 1M tokens) | Nova 2 Lite: $0.30 | — |
| Platform Review Rating(stars) | 4.2 stars | — |
| Platform Review Count(reviews) | 205 reviews | — |
| Enterprise Workspace AI Integration | Bedrock AI platform for custom applications | — |
| Physical Store Locations (USA)(locations) | 1 (Amazon Go/Fresh stores) | — |
| Standard Return Window(days) | 30 days | — |
| Same-Day Service Coverage (USA)(metro areas / locations) | 70+ metro areas | — |
| Product SKU Count(products) | 350M+ products | — |
| In-Store Expert Support(availability) | Not available | — |
| Market Capitalization (2026)(USD Trillions) | $2.1 trillion | — |
Microsoft CorporationAmazon.com Inc.Show 1 more attribute
Show 1 more attribute
Pros & Cons
12 pros·6 cons across both
Microsoft Corporation
Pros
- Fastest overall revenue growth at 18% YoY
- Exceptional profit margins at 47% net income
- Azure cloud revenue growing 40% YoY, outpacing AWS growth rate
- Microsoft Cloud revenue up 26% YoY to $49.1B
- Strong AI positioning through exclusive OpenAI partnership (until April 2026)
- Smoother quarter-to-quarter revenue with less volatility
Cons
- Lost exclusive OpenAI hosting rights in April 2026, reducing competitive moat
- Faces risks from AI server depreciation affecting margins
- Azure still smaller absolute scale than AWS ($129B vs estimated $80B+)
Amazon.com Inc.
Pros
- AWS dominates cloud market with $129B in annual revenue and $33B Q3 revenue
- AWS revenue acceleration: 20% YoY in Q3 (up from 17.5% in Q2)
- Strong advertising services growth at 24% YoY
- Diversified revenue streams beyond cloud (e-commerce, advertising, logistics)
- Capital expenditure expected to ease by 2026, potentially boosting AWS margins
- AWS generated $11.4B of $17.4B operating income in Q3
Cons
- Lower overall revenue growth at 13% YoY vs Microsoft's 18%
- Net profit margin significantly lower at ~9.6% vs Microsoft's 47%
- Heavy capital requirements have historically pressured margins
Frequently Asked Questions
5 questions
Microsoft's cloud business shows stronger growth momentum with Azure +40% YoY and Microsoft Cloud +26% YoY, compared to AWS +20% YoY. However, AWS still maintains larger absolute market share ($129B annual revenue vs Azure's estimated $80B+). Amazon's capital expenditure is expected to ease by 2026, which could accelerate AWS margin expansion, making it competitive for long-term cloud infrastructure dominance.
Resources & Learn More
Curated sources to dive deeper
Wikipedia
- W
Microsoft Corporation on Wikipedia (opens in new tab)
Multinational technology corporation providing operating systems, productivity software, cloud services, and enterprise solutions.
- W
Amazon.com Inc. on Wikipedia (opens in new tab)
Global e-commerce and cloud services company with 2.1 trillion USD market cap offering millions of products with fast shipping.
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