The technology giant posted quarterly revenue of $76.4 billion, an 18% increase year-on-year, while operating income rose 23% to $34.3 billion. Net income climbed 24% to $27.2 billion, with diluted earnings per share also increasing 24% to $3.65.
Microsoft has reported strong financial results for the fourth quarter and full fiscal year ended June 30, 2025, driven by continued growth in its cloud and artificial intelligence (AI) businesses. The technology giant posted quarterly revenue of $76.4 billion, an 18% increase year-on-year, while operating income rose 23% to $34.3 billion. Net income climbed 24% to $27.2 billion, with diluted earnings per share also increasing 24% to $3.65.
The company’s cloud business remained the primary growth engine during the quarter. Microsoft Cloud generated $46.7 billion in revenue, representing a 27% year-on-year increase, while the Intelligent Cloud segment recorded revenue of $29.9 billion, up 26%. Within the segment, Azure and other cloud services revenue grew by 39%, reflecting sustained enterprise demand for cloud infrastructure and AI-enabled services.
Microsoft Chairman and Chief Executive Officer, Satya Nadella, attributed the company’s performance to rising enterprise adoption of cloud and AI technologies.
“Cloud and AI is the driving force of business transformation across every industry and sector,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”
– Satya Nadella, Chairman and Chief Executive Officer, Microsoft
The Productivity and Business Processes division also delivered solid growth, with revenue rising 16% to $33.1 billion. Microsoft 365 Commercial products and cloud services revenue increased 16%, supported by an 18% rise in Microsoft 365 Commercial cloud revenue. Microsoft 365 Consumer products and cloud services grew 21%, while LinkedIn revenue increased 9%. Dynamics products and cloud services revenue rose 18%, driven by a 23% increase in Dynamics 365 revenue.
The More Personal Computing segment generated $13.5 billion in revenue, up 9% from the same period last year. Windows OEM and Devices revenue increased 3%, Xbox content and services revenue grew 13%, and search and news advertising revenue, excluding traffic acquisition costs, rose 21%.
Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft, highlighted the company’s strong finish to the fiscal year.
“We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7 billion, up 27% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.”
– Amy Hood, Executive Vice President and Chief Financial Officer, Microsoft
For the full fiscal year ended June 30, 2025, Microsoft reported revenue of $281.7 billion, a 15% increase over the previous year. Operating income rose 17% to $128.5 billion, while net income increased 16% to $101.8 billion. Diluted earnings per share also grew 16% to $13.64.
Microsoft also continued returning capital to investors during the quarter, distributing $9.4 billion through dividends and share repurchases. The company said it will provide forward-looking guidance during its earnings conference call and webcast, where executives are expected to discuss business performance and future growth prospects.
