Microsoft Corporation reported robust earnings for the third quarter ended March 31, 2025, with significant growth across its major business segments, driven largely by cloud computing and AI-related services.
The tech giant posted revenue of $70.1 billion, marking a 13% increase compared to the same quarter last year. Operating income rose to $32.0 billion, up 16%, while net income surged 18% to $25.8 billion. Diluted earnings per share also climbed 18% to reach $3.46.
Satya Nadella, Chairman and CEO of Microsoft, emphasized that cloud and AI are now foundational to driving business success, enabling organizations to scale output, optimize costs, and accelerate growth. He highlighted that Microsoft is leading innovation across the entire technology spectrum, from AI infrastructure and platforms to applications, to empower customers with transformative solutions.
Echoing this momentum, Amy Hood, Executive Vice President and CFO, remarked that Microsoft delivered an exceptional quarter, with Microsoft Cloud revenue soaring to $42.4 billion, a 20% year-over-year increase, propelled by strong and sustained demand for its differentiated cloud offerings.
Segment Highlights
- Productivity and Business Processes: Revenue increased 10% to $29.9 billion. Microsoft 365 Commercial and Consumer products saw double-digit growth, while LinkedIn revenue rose 7% and Dynamics products and services grew by 11%.
- Intelligent Cloud: Revenue reached $26.8 billion, a 21% increase, fueled by a 22% rise in server products and cloud services. Azure and other cloud services posted impressive growth of 33%.
- More Personal Computing: This segment generated $13.4 billion in revenue, up 6%. Windows OEM and Devices revenue rose by 3%, Xbox content and services climbed 8%, and Search and news advertising revenue jumped 21%.
During the quarter, Microsoft returned $9.7 billion to shareholders through dividends and share repurchases.
Meta’s Strong Quarter
In related earnings news, Meta Platforms, Inc. also announced solid results for the same quarter. The company reported revenue of $42.31 billion, up 16% year-over-year.
“We’ve had a strong start to an important year,” said Meta CEO Mark Zuckerberg. “Our community continues to grow, and our business is performing very well. We’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.”
Both tech giants continue to capitalize on the accelerating demand for AI and cloud solutions, setting the tone for a competitive year ahead in the digital landscape.
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