Tech giant Microsoft Corp. reported an 18% increase in revenue to $77.7 billion for the quarter ended Sept. 30, 2025, driven mainly by gains in its cloud and artificial intelligence (AI) businesses. Operating income grew 24% to $38 billion, while net income grew by 12% to $27.7 billion.
Microsoft returned $10.7 billion to shareholders through dividends and share buybacks during the period. Diluted earnings per share reached $3.72 under generally accepted accounting principles (GAAP).
Microsoft Cloud revenue climbed 26% to $49.1 billion, with strong demand for AI-powered services and cloud infrastructure. The company’s commercial remaining performance obligation increased 51% to $392 billion, reflecting higher long-term commitments from enterprise clients.
“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact,” said Satya Nadella, chair and CEO of Microsoft, in a media advisory. “It’s why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”
Revenue from the Productivity and Business Processes segment grew 17% to $33 billion, driven by growth in Microsoft 365 and Dynamics 365. Microsoft 365 Commercial cloud revenue rose 17%, while Dynamics 365 increased 18%. LinkedIn revenue was up 10%.
The Intelligent Cloud segment posted $30.9 billion in revenue, up 28%, with Azure and other cloud services rising 40%.
Revenue from the More Personal Computing division increased 4% to $13.8 billion, supported by modest gains in Windows OEM and device sales, and a 16% increase in search and news advertising revenue. Xbox content and services revenue remained steady.