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Microsoft reports $69.6 billion revenue in the second quarter of 2025 fiscal year

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Today, on January 29, 2025, Microsoft published the results of the second quarter of the 2025 fiscal year. During the period, Microsoft generated $69.6 billion in revenue, with a 12% increase year-over-year. Operation income increased by 17% and totaled $31.7 billion, while net income increased by 10% to $24.1 billion.

Overall, Microsoft reported $3.23 earnings per share, which is a 10% increase over the same quarter from 2024, and returned $9.7 billion to shareholders. The company also reported a 5% operating expense increase ($16.2 billion) "driven by investments in cloud engineering."

Microsoft's FY25 Q2 report is divided into three business categories: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Productivity and Business Processes generated $29.4 billion in revenue (a 14% increase), with the following highlights:

  • 16% increase in Microsoft 365 Commercial products and cloud services
  • 8% increase in Microsoft 365 Consumer products
  • 9% increase in LinkedIn revenue
  • 15% increase in Dynamics products and cloud revenue

Intelligent Cloud, which includes Microsoft's server products, such as Azure, generated $25.5 billion in revenue, a 19% year-over-year increase, thanks to a 31% growth of Azure and other cloud services revenue. Microsoft CEO Satya Nadella said the following about the company's AI efforts:

We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead. Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.

The More Personal Computing category, which includes Windows OEM, Xbox, and search business, generated $14.7 billion in revenue:

  • Windows OEM and Devices revenue increased by 4%
  • Gaming revenue declined by 7%
  • Xbox content and services grew by 2% thanks to Xbox Game Pass growth
  • Xbox hardware revenue declined by 29%
  • Search and ad business revenue grew by 21%

You can find more information about Microsoft's second quarter of the 2025 fiscal year on the official website.

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