Azure, AI, and more: Microsoft closes FY25 with record numbers and big returns

Microsoft

Microsoft has closed out its fiscal year on a high, reporting a strong fourth quarter with double-digit growth across key business segments, largely fuelled by relentless demand for cloud and AI services.

For the quarter ended June 30, 2025, the tech giant posted revenue of $76.4 billion, up 18% year-over-year, while net income rose 24% to $27.2 billion. Diluted earnings per share came in at $3.65, also up 24%.

At the heart of this performance is Microsoft’s Intelligent Cloud division, which brought in $29.9 billion—up 26% from a year ago—driven by a 39% surge in Azure and other cloud services. Azure’s annual revenue has now surpassed $75 billion, reflecting its central role in the company’s long-term growth strategy. CEO Satya Nadella credited this momentum to businesses across sectors using AI and cloud to drive transformation, calling it the defining trend of the new tech era.

“Cloud and AI is the driving force of business transformation across every industry and sector," said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year,

The Microsoft Cloud as a whole generated $46.7 billion in revenue this quarter, growing 27% year-over-year, as demand for AI-infused cloud solutions continues to expand. Productivity and Business Processes — home to Microsoft 365, LinkedIn, and Dynamics — saw a 16% revenue jump to $33.1 billion. Microsoft 365 Commercial revenue rose 16%, while Dynamics 365 surged 23%, signalling continued enterprise investment in digital tools.

Even the consumer-facing More Personal Computing division saw a rebound, growing 9% to $13.5 billion. Xbox content and services revenue climbed 13%, and search and news advertising rose 21%, showing strength in Microsoft’s broader ecosystem beyond the enterprise.

For the full fiscal year, Microsoft reported revenue of $281.7 billion, operating income of $128.5 billion, and net income of $101.8 billion — up 15%, 17%, and 16% respectively.

With strong financials, $9.4 billion returned to shareholders this quarter, and AI tailwinds firmly in its sails, Microsoft looks well-positioned heading into FY26.