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Microsoft financials surge, posts strong Q4

Jul 31, 2025, 3:01 PM

Microsoft Redmond...

This April 12, 2016 file photo shows the Microsoft logo in Issy-les-Moulineaux, outside Paris. (Photo: Michel Euler, AP)

(Photo: Michel Euler, AP)

Microsoft has posted strong financial results for the fourth quarter and fiscal year ending June 30, attributed primarily to continued demand for cloud services and AI programs.

Q4 highlights: Robust growth across key metrics

Operating income rose by 23% to $34.3 billion, while net income reached $27.2 billion, also up 24%. Diluted earnings per share climbed to $3.65, mirroring the same year-over-year growth rate. 

CEO Satya Nadella attributed the performance to continued innovation in cloud and AI, emphasizing that Azure alone surpassed $75 billion in annual revenue. That is a 34% increase year-over-year. 

The company’s Intelligent Cloud segment, which includes Azure and other cloud-based services, was a substantial driver during the fourth quarter. This segment recorded $29.9 billion in revenue, up 26% from the previous year. 

In Productivity and Business Processes, Microsoft reported $33.1 billion in revenue, which represents a 16% increase over the prior year. Among individual users, Microsoft 365 Consumer revenue grew by 21%, while LinkedIn revenue rose 9% and Dynamics products and cloud services grew 18%.

Full-year results: Double-digit growth continues

For the full fiscal year, Microsoft reported revenue of $281.7 billion, a 15% increase over 2024. Operating income rose by 17% to reach $128.5 billion, while net income came in at $101.8 billion, an increase of 16%. Diluted earnings per share for the year rose to $13.64, also reflecting 16% growth. 

Looking ahead, Microsoft said it remains aware of a range of potential risks, including economic conditions, regulatory challenges, and market competition. Despite these uncertainties, the Seattle company appears to be capable of continued growth.

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Microsoft financials surge, posts strong Q4