On April 30, 2025, Microsoft Corporation (Nasdaq: MSFT) announced its Q3 fiscal 2025 financial results, revealing significant growth driven by its cloud and artificial intelligence (AI) segments. This quarterly earnings report highlights how Microsoft, leveraging AI and cloud technology, continues to propel market leadership across productivity software, intelligent cloud services, and personal computing.
Who: Microsoft Corporation, led by CEO Satya Nadella and CFO Amy Hood. What: Microsoft reported $70.1 billion in revenue for Q3 FY 2025, a 13% increase year-over-year (YoY), or 15% in constant currency terms, reflecting strong operational execution amid variable foreign exchange impacts. When: Quarter ended March 31, 2025. Where: Headquartered in Redmond, Washington, Microsoft’s global operations contributed to this growth.
Total Revenue: $70.1 billion, +13% (15% constant currency)
Operating Income: $32.0 billion, +16% (19% constant currency)
Net Income: $25.8 billion, +18% (19% constant currency)
Diluted EPS: $3.46, +18% (19% constant currency)
Microsoft Cloud Revenue: $42.4 billion, +20% (22% constant currency)
Productivity and Business Processes: $29.9 billion (+10%, 13% constant currency)
Microsoft 365 Commercial: +11% (14% constant currency)
Microsoft 365 Consumer: +10% (12% constant currency)
LinkedIn: +7% (8% constant currency)
Dynamics 365: +16% (18% constant currency)
Intelligent Cloud: $26.8 billion (+21%, 22% constant currency)
Server Products and Cloud Services: +22% (24% constant currency)
Azure and Other Cloud Services: +33% (35% constant currency)
More Personal Computing: $13.4 billion (+6%, 7% constant currency)
Windows OEM and Devices: +3%
Xbox Content and Services: +8% (9% constant currency)
Search and News Advertising (excl. TAC): +21% (23% constant currency)
CEO Satya Nadella emphasized, “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth.” This underscores Microsoft’s strategic pivot towards AI-powered infrastructures and services across its product ecosystem. CFO Amy Hood highlighted Microsoft Cloud’s continued demand with a 20% revenue increase, reflecting its industry differentiation and scalable technology platforms.
Microsoft generated an operating income increase of \(4.4 billion QoQ, alongside generating \)37 billion in net cash from operations, up 16% from the prior fiscal quarter. Capital expenditures rose to $16.7 billion, supporting cloud infrastructure expansion and AI research investments.
These results build on Microsoft’s prior earnings call themes emphasizing AI innovation, cloud platform agility, and diversified revenue streams from commercial and consumer channels. Microsoft’s cloud services, including Azure, now contributing over $42 billion in revenue alone, underscore its fundamental role as a major hyperscaler competing with leading cloud providers.
The company is poised for sustained growth driven by AI advancements and expanding enterprise cloud adoption. Forward-looking guidance will be detailed in the upcoming earnings conference call hosted by Microsoft executives.
Robust 20% growth in Microsoft Cloud revenue confirms the company’s leadership in infrastructure-as-a-service and platform-as-a-service markets.
AI integration across Microsoft 365 and Azure enhances long-term recurring revenue potential and customer retention.
Balanced growth across diverse segments provides resilience amid geopolitical and economic uncertainties.
Continued shareholder returns with $9.7 billion returned in dividends and share repurchases this quarter.
For detailed financial data and full report access, see the official SEC filing: Microsoft Q3 2025 8-K Report.
cloud computing, artificial intelligence, Microsoft financials, Azure growth, Q3 2025 earnings