Microsoft has reported robust financial results for Q1 FY25, with total revenue rising 16% year-over-year to $65.6 billion. The tech giant posted an operating income of $30.6 billion, a 14% increase, and earnings of $3.46 per share.
A key highlight of the quarter was the 18% growth in search and news advertising revenue, excluding traffic acquisition costs. Total advertising revenue across Microsoft’s platforms crossed $20 billion over the past 12 months. LinkedIn revenue also rose by 10% during the same period.
CEO Satya Nadella credited the performance to ongoing AI-driven transformation across products and services. “AI is changing every role, function, and business process. It’s reshaping work, workflows, and work artifacts,” Nadella said, emphasizing AI’s role in driving productivity and revenue growth.
Amy Hood, Microsoft’s Executive VP and CFO, praised the company’s execution and highlighted that Microsoft Cloud revenue reached $38.9 billion, marking a 22% year-over-year jump.
Other business segments also posted gains:
- Microsoft 365 Commercial revenue rose 13%
- Consumer cloud services revenue increased by 5%
- Windows OEM and devices saw a modest 2% lift
- Xbox content and services revenue soared 61%, boosted significantly by the Activision acquisition
Looking ahead, Nadella projected continued growth for Microsoft’s advertising business, particularly in search and news, with expected mid-teens percentage gains, supported by expanding market share for Bing and Edge.
