Microsoft delivered a blockbuster quarter to close his fiscal year 2025. He led the wave of increasing demand for cloud and AI services and sent their shares in retail with after-hours to new heights. For the quarter ended on June 30, 2025, Microsoft reported Sales of 76.4 billion US dollars, a jump of 18% over the previous year. The net income increased even faster and rose by 24% to $ 27.2 billion. The result per share reached $ 3.65 and exceeded the analyst estimates of USD 3.37. “In our largest quarter of the year” CEO Satya Nadella told analysts After the following earnings call “we have significantly exceeded expectations”.
The investors reacted decisively to the optimistic results and the optimistic AI prospects. Microsoft’s shares climbed more than 7%in stores, pushed the shares towards the record highs and raised the market capitalization of Microsoft over the 4 trillion US Nvidia. The reaction of Wall Street in the strategy of Microsoft, in particular the aggressive investments in the Cloud infrastructure and its advance, underlined the response to commercial, Ki tools such as Copilot about their productivity and developer platforms.
Nadella was emphatic in the press release of the profits: “Cloud and AI is the driving force of business transformation in every industry and in every sector. We innovate in the entire Tech stack to help the customer adapt and grow in this new era.”
On the subsequent winning call ,, An analyst expressed surprise To the size of the results. “Satya, back to the strength in the quarter … it is only the size of the upward that many shocked here.”
Up to this point, the intelligent cloud segment of the company – home to Azure – made sales of $ 29.9 billion and rose by 26%. Azure and other cloud services rose by 39% in the quarter, while annual Azure turnover exceeded $ 75 billion and increased by 34% compared to the previous year. Nadella cited large corporate customers who used both traditional and AI-operated workloads at Azure, and emphasized that this is no longer just about experiments. The companies move quickly to use AI on a scale.
Nadella claimed on the analyst call That “we continue to lead the AI infrastructure wave and have won a market share every quarter this year”, with Microsoft operating more data centers than any other cloud provider that has opened new facilities on six continents. He said it was over 400 data centers in 70 regions.
Strength across the board
The segment for productivity and business processes, anchored by Microsoft 365 and LinkedInGenerated 33.1 billion US dollars (+16%), and more personal computing brought 13.5 billion US dollars (+9%), strengthened by recovering the device requirements and increasing Xbox content income. Over the entire 2025 financial year, Microsoft collected sales of $ 281.7 billion (+15%) and a net result of USD 101.8 billion (+16%). The company also returned 9.4 billion US dollars to the shareholders in the fourth quarter.
CFO Amy Hood emphasized the operational discipline of Microsoft and the scaling of AI investments and unveiled the Income call That the company expects over 30 billion US dollars to investment expenses in the first quarter of 2026Present “Driven by the continued strong demand signals that we see.
When asked about the Return on Investment into these massive expenditure, Hood replied that Microsoft has 368 billion US dollars in a contractual deficit in the “Width of Microsoft Cloud”, not only Azure, about the “width of the Microsoft Cloud”. She added that she is very confident that these expenses are “directly bound to the business, which is already being contracted and in the books – and that we have to deliver”.
Hood also calmed down the company’s advanced dynamics, which was found in an internal post-fengings memo Registered by Business Insiderthat “the FY26 require intensity, clarity and courageous execution”, which reflects both the opportunities and competitive pressure, while Microsoft doubles the AI and security priorities.
For this story, Assets Used generative AI to help with a first draft. An editor checked the accuracy of the information before publication.
Introduction of the 2025 Fortune 500The final ranking of the largest companies in America. Explore this year’s list.
