Microsoft Earnings Jump 18 Percent to $76.4 Billion

Microsoft reported that it earned a net income of $27.2 billion on revenues of $76.4 billion in the quarter ending June 30, 2025. Those figures represent gains of 24 percent and 18 percent, respectively, year-over-year (YOY).

The quarter also marked the end of Microsoft’s fiscal year, with the software giant reporting a net income of $101.8 billion (up 16 percent YOY) on revenues of $281.7 billion (up 15 percent).

“Cloud and AI is the driving force of business transformation across every industry and sector,” Microsoft chairman and CEO Satya Nadella said. “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.”

Productivity and Business Processes was again Microsoft’s biggest business unit, with $33.1 billion, up 16 percent YOY. Revenues from Microsoft 365 commercial products and cloud services were up 16 percent, revenues from Microsoft 365 consumer products and cloud services were up 21 percent, and there are now 89 million Microsoft 365 consumer subscribers.

Intelligent Cloud delivered revenues of $29.9 billion in the quarter, up 26 percent YOY. Azure revenue growth was 34 percent, while Server revenues were up 27 percent.

And More Personal Computing again brought up the rear, with revenues of $13.5 billion, a gain of 9 percent. Microsoft credited Search and news advertising and Gaming for that gain. Windows revenues from PC makers rose 3 percent in the quarter, Gaming revenue was up 10 percent overall, Xbox content and services grew 13 percent, and Xbox hardware revenues declined 22 percent.

Of course, what everyone wants to know is how much Microsoft spent on AI. As predicted, the company’s capital expenditures well exceeded the $20 billion estimate, coming in at $24.2 billion, up 27 percent YOY. So Microsoft spent $84.6 billion in the fiscal year on AI-related expenditures, above the $80 billion in estimated.