Tech giant Microsoft Corp. reported an increase in revenue and income for the third quarter of fiscal year 2025, driven by ongoing demand for its cloud and artificial intelligence (AI) services.
The company posted $70.1 billion in revenue, up 13% compared to the same period last year. Operating income reached $32 billion, a 16% increase. Net income was $25.8 billion, also up 18%, while earnings per share rose to $3.46.
“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, chair and CEO of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”
Cloud and business services continue to grow
Microsoft Cloud brought in $42.4 billion in revenue, an increase of 20% year-over-year. Its Productivity and Business Processes segment earned $29.9 billion, which is up 10%, and this is led by growth in Microsoft 365 Commercial and Consumer products.
Revenue from LinkedIn rose 7%, while Dynamics products and services saw an 11% increase. Dynamics 365 alone grew by 16%.
The Intelligent Cloud segment recorded $26.8 billion in revenue, a 21% rise. Server products and cloud services increased 22%, with Azure and other cloud services growing 33%.
Gaming, ads, and Windows show steady performance
More Personal Computing generated $13.4 billion in revenue, up 6% from the previous year. Xbox content and services rose 8%, while search and news advertising increased 21%. Windows OEM and Devices revenue grew by 3%.
In the same quarter, Microsoft returned $9.7 billion to shareholders through dividends and share buybacks.