Microsoft Corporation has released its earnings report for the fourth quarter of fiscal year 2025 (April–June 2025), beating market expectations across key metrics. The company reported total revenue of $76.4 billion, a solid 18% year-over-year increase.
The performance was largely driven by strong growth in Azure Cloud Services and AI-integrated productivity tools, reflecting Microsoft’s deep investment and leadership in the next generation of enterprise technology.
Microsoft Financial Comparison – Q4 FY2025 vs Q4 FY2024
| Financial Metric | Q4 FY2025 | Q4 FY2024 | YoY Growth (%) |
| Total Revenue | $76.4 billion | $64.0 billion | +18% |
| Operating Income | $34.3 billion | $27.9 billion | +23% |
| Net Income | $27.2 billion | $22.0 billion | +24% |
| Diluted EPS | $3.65 | $2.94 | +24% |
| Microsoft Cloud Revenue | $46.7 billion | $36.8 billion | +27% |
| Intelligent Cloud Segment | $29.9 billion | $23.7 billion | +26% |
| Azure & Other Cloud Services | ~39% growth (YoY) | ~27% growth (YoY) | ↑ Accelerated |
Summary of Key Improvements:
- Revenue: Microsoft added $12.4 billion more revenue this quarter compared to last year, mainly due to cloud and AI demand.
- Profitability: Operating and net income both jumped over 20%, showing cost efficiency along with growth.
- Cloud Domination: Microsoft Cloud revenue grew $9.9 billion in just one year — a clear indicator of the AI boom.
- Azure’s Speed: Azure’s YoY growth rate accelerated from ~27% last year to ~39% this quarter, signaling its rising dominance in enterprise AI infrastructure.
- Earnings Per Share (EPS): Improved from $2.94 to $3.65, showing strong returns for shareholders.
Copilot: The AI That’s Reshaping Productivity
One of the most transformative elements of Microsoft’s strategy has been Copilot, an AI-powered assistant embedded into Word, Excel, Outlook, and Teams. Adoption has been rapid, especially among enterprise users, with millions already using it to automate tasks, generate content, and analyze data.
Why Copilot Is a Game-Changer:
- Drafts emails and documents automatically
- Performs real-time data analysis
- Improves productivity and user engagement
- Seamlessly integrated across the Microsoft ecosystem
Microsoft continues to expand Copilot’s availability in more markets and languages, reinforcing its AI-first strategy.
Azure Cloud: The Backbone of AI Adoption
Azure, Microsoft’s cloud computing platform, was the fastest-growing business segment this quarter. With 27% revenue growth, it has become a critical infrastructure provider for AI workloads.
Reasons Behind Azure’s Success:
- Used extensively by businesses for training and deploying AI models like GPT, LLaMA, etc.
- Deep integration with OpenAI technologies
- Scalable, secure, and enterprise-grade performance
Azure is increasingly closing the gap with AWS and continues to outperform Google Cloud in several enterprise AI and data analytics segments.
Statement from CEO Satya Nadella
“We are at the beginning of the AI era, and Microsoft is leading the way. Our customers are rapidly adopting AI across every layer of the tech stack, and we are committed to delivering secure, responsible, and scalable AI experiences.”
Other Business Highlights
- GitHub Copilot continues to gain traction among developers as an AI coding assistant.
- LinkedIn witnessed growth in user engagement, fueled by strong hiring activity and content tools.
- Gaming segment received a boost from the integration of Activision Blizzard, opening new growth opportunities.
What It Means for Investors
Microsoft’s Q4 performance signals long-term strength and consistency in execution. With aggressive AI adoption, a dominant cloud platform, and innovative tools like Copilot, Microsoft is well-positioned for continued growth in FY2026 and beyond.
Outcome
Microsoft’s Q4 FY2025 results reinforce its position as a leader in the AI-powered digital future. With strong momentum in cloud, productivity, and enterprise solutions, Microsoft is not just adapting to the AI era—it’s shaping it.
