Revenue climbs 18% to $77.7 billion as Azure growth and AI integration power record performance
Microsoft Corp. (MSFT) reported another quarter of robust financial performance, underscoring its leadership in cloud computing and artificial intelligence. For the quarter ended September 30, 2025, the company posted revenue of $77.7 billion, an 18% increase from the same period last year, while operating income rose 24% to $38 billion.
Net income reached $27.7 billion (GAAP), up 12%, and $30.8 billion (non-GAAP), up 22%, with diluted EPS of $3.72 and $4.13, respectively. Excluding investments in OpenAI, Microsoft still saw impressive growth across its core segments, particularly within the Microsoft Cloud, which generated $49.1 billion in revenue, a 26% year-over-year increase.
Chairman and CEO Satya Nadella attributed the performance to Microsoft’s “planet-scale cloud and AI factory,” emphasizing the company’s continued investments in AI infrastructure and workforce to seize “the massive opportunity ahead.” CFO Amy Hood added that strength across revenue, operating income, and EPS reflected “growing customer demand for our differentiated platform.”
In segment performance, Azure and other cloud services surged 40%, while Microsoft 365 Commercial and Consumer Cloud grew 17% and 26%, respectively. LinkedIn revenue increased 10%, and Dynamics 365 rose 18%. The More Personal Computing segment, which includes Windows and Xbox, climbed 4%, with search and news advertising up 16%.
Microsoft also returned $10.7 billion to shareholders through dividends and buybacks during the quarter, reinforcing confidence in its long-term outlook.
As Microsoft continues integrating AI across its product ecosystem—from Copilot tools to cloud services—its latest results highlight both strong execution and the accelerating global demand for intelligent computing solutions.
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