Microsoft finished the first quarter of the 2025 fiscal year on September 30, 2024, and now it is time to report its earnings.
In the first quarter of the 2025 fiscal year (remember, fiscal and calendar years are not the same), Microsoft generated $65.6 billion of revenue, a 16% increase over the same period one year ago. Operation income increased by 14% and totaled $24.7 billion. Overall, Microsoft reported a $3.30 earnings per share, which, again, is a 10% increase over the same quarter from 2024. The company also acknowledged a 12% operating expenses increase ($14.9 billion) due to the Activision purchase and investment in cloud engineering.
Amy Hood, executive vice president and CFO of Microsoft, said the following about the company"s latest report:
Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year.
Microsoft"s latest financial report is divided into three categories: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Productivity and Business Processes generated $28.4 billion in revenue (12% up and 15% up in constant currency), with the following highlights:
- 13% increase in Microsoft 365 Commercial products and cloud services
- 5% increase in Microsoft 365 Consumer products
- 10% increase in LinkedIn revenue
- 14% increase in Dynamics products and cloud revenue
Intelligent Cloud, which includes Microsoft"s server products, such as Azure, generated $24.1 billion in revenue, a 20% year-over-year increase. The More Personal Computing category, which includes Windows OEM, Xbox, and search business, generated $13.2 billion in revenue, a significant increase of 17%. Gaming revenue grew 43% thanks to the Activision acquisition, while Xbox hardware revenue declined 29%.
Microsoft also reported that it had returned $9 billion to shareholders in the form of dividends and share repurchases in the first quarter of the 2025 fiscal year.
You can find more information about Microsoft"s first quarter of the 2025 fiscal year on the official website.