Microsoft’s revenue grew by 12% to $69.6 billion in the last quarter, thanks to its cloud and AI businesses

BY THE ARAB TODAY Jan 30, 2025

Microsoft’s revenue grew by 12% to $69.6 billion in the last quarter, thanks to its cloud and AI businesses
Microsoft's revenue grew by 12% to $69.6 billion in the last quarter, thanks to its cloud and AI businesses

Microsoft’s revenue grew by 12% to $69.6 billion in the last quarter, thanks to its cloud and AI businesses

Microsoft shared strong financial results for the second quarter of its 2025 fiscal year on Wednesday. The company made $69.6 billion in revenue, which is a 12% increase from last year, driven by growth in its cloud and AI businesses.

Microsoft’s earnings for Q2 2025

  • Operating income grew by 17% compared to last year, reaching $31.7 billion. This is a 16% increase when adjusted for currency changes. Net income grew by 10% to $24.1 billion, and earnings per share also increased by 10%, reaching $3.23.
  • These results show that Microsoft is performing well across its business areas, providing a strong foundation as it enters the new year.
  • Revenue from the Productivity and Business Processes division was $29.4 billion, a 14% increase. This growth came from strong performances in Microsoft 365 Commercial and Consumer products, as well as LinkedIn and Dynamics.
  • The Intelligent Cloud division saw a 19% rise in revenue, reaching $25.5 billion. Azure and other cloud services grew by 31%.
  • The More Personal Computing division remained steady at $14.7 billion, with growth in Windows OEM, Devices, and Xbox content and services.
  • Microsoft also returned $9.7 billion to shareholders in the form of dividends and share buybacks in Q2 2025.

Key quotes

Satya Nadella, Microsoft’s CEO, said, “We are innovating with our technology and helping customers get the full value from AI to seize big opportunities. Our AI business now has an annual revenue of over $13 billion, up 175% from last year.”

Amy Hood, Microsoft’s CFO, said, “Microsoft Cloud revenue was $40.9 billion, up 21% from last year.”

Microsoft plans to invest about $80 billion in fiscal year 2025 to build AI-enabled data centers and deploy AI and cloud services worldwide, with more than half of the investment going to the US.

Since OpenAI launched ChatGPT in 2022, AI investment has been growing rapidly as companies add it to their products. Microsoft, OpenAI’s main supporter, is leading in the AI field but faces competition from China’s DeepSeek, which is backed by strong investments from both the government and private companies.

Published: 30th January 2025

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