Microsoft just posted the fourth and ultimate quarter of its 2025 fiscal monetary outcomes. The software program maker made $76.4 billion in income and a web revenue of $27.2 billion throughout This fall. Income is up 18 p.c, and web revenue has elevated by 24 p.c.
Like clockwork, cloud providers are the robust level of Microsoft’s income this quarter. Azure income grew 39 p.c year-over-year, and Microsoft CEO Satya Nadella says “Azure surpassed $75 billion in income” for the yr, up 34 p.c.
Home windows and Floor income
The PC market continues to be feeling the consequences of the Trump tariffs and shopper spending, whereas companies look to refresh PCs forward of Home windows 10’s finish of assist in October. In consequence, Home windows OEM and gadgets income is up 3 p.c yr over yr, pushed by development in Home windows OEM income.
Gartner said earlier this month that PC shipments have been up greater than 4 p.c within the current quarter, due to a Home windows 11 refresh cycle for desktop PCs. Microsoft primarily makes cash from Home windows by OEM income, the value that producers pay to license Home windows for laptops and PCs.
Whereas this time last year Microsoft’s Floor income had been in decline for 2 years, Microsoft began combining Home windows and gadgets income collectively throughout this previous monetary yr, so it’s nonetheless not clear how Floor is performing.
Microsoft did launch two new Floor gadgets within the current quarter, although: the 12-inch Surface Pro and 13-inch Surface Laptop. Each gadgets launched halfway by the quarter, so the total impression of gross sales on Home windows OEM and gadgets income received’t be felt till subsequent quarter.
Xbox content material and providers income, which incorporates Xbox Sport Move, is up by 13 p.c this quarter. Microsoft nonetheless isn’t revealing any new Sport Move subscriber numbers, although, and the final time we bought an replace was in February 2024, when Microsoft revealed there have been 34 million subscribers, together with Xbox Sport Move Core (beforehand Xbox Reside Gold) members.
Microsoft has been aggressively pushing forward with its technique to carry extra beforehand Xbox-exclusive video games to PlayStation and Nintendo Swap over the previous yr. Senua’s Saga: Hellblade II is arriving on PS5 next month, alongside the unique Gears of War as a remastered version. Microsoft additionally launched Forza Horizon 5 on PS5 earlier this yr, in addition to Age of Empires II: Definitive Edition, Age of Mythology: Retold, and Indiana Jones and the Nice Circle.
Whereas the transfer to carry extra Xbox video games to PlayStation may need angered some followers, it has confirmed to be a profitable selection. Preorders for Indiana Jones and the Nice Circle and Forza Horizon 5 topped Sony’s own PlayStation Store earlier this yr, and Circana revealed this week that Microsoft had six of the ten top-selling video games on PlayStation within the current quarter.
Xbox {hardware} continues to be struggling, although. Xbox {hardware} income is down 22 p.c this quarter, regardless of a busy interval for Sport Move. Total gaming income at Microsoft is up 10 p.c.
Microsoft’s Xbox everywhere strategy — which I’ve been masking intently in my Notepad newsletter over the previous yr — can even embody titles for the Nintendo Swap 2. It’s attainable we would even see one throughout Nintendo’s Switch 2 partner Direct tomorrow.
Trying forward, Microsoft can also be heading to the Gamescom show subsequent month, the place it should let attendees play with its new Xbox Ally handheld devices. A playable demo of the long-awaited Hole Knight: Silksong can even be out there on the ROG Xbox Ally handhelds, as nicely “a pair extra surprises on the present from our companions too.”
Microsoft 365 business cloud income grew by 18 p.c year-over-year, pushed by development in income per person and Microsoft 365 Copilot. The January value improve to Microsoft 365 shopper plans has additionally contributed to twenty p.c of development in Microsoft 365 Shopper cloud income. There are actually 89 million Microsoft 365 shopper subscribers, up 8 p.c year-over-year.
It’s Microsoft’s cloud development that’s actually the story this quarter as soon as once more. Azure and different cloud providers grew by 39 p.c, an enormous bounce that was pushed by development throughout all workloads, in accordance with Microsoft. Server merchandise income declined 2 p.c, an indication that Microsoft’s clients are more and more shifting to its cloud choices.
LinkedIn income was additionally up 9 p.c this quarter, with classes additionally rising by 7 p.c. Microsoft says it has seen “document engagement” with LinkedIn this quarter.
Microsoft will now maintain an earnings name at 5:30PM ET / 3:30PM PT, and we’ll replace this text with any related feedback.