Net income climbs 10% to $24.1 billion; Microsoft Cloud revenue hits $40.9 billion
Microsoft posted strong financial results for Q2 FY25, reporting revenue of $69.6 billion, up 12% year-on-year, driven by continued demand for its cloud and AI services. Net income for the quarter rose 10% to $24.1 billion, while operating income climbed 17% to $31.7 billion.
Diluted earnings per share (EPS) stood at $3.23, marking a 10% increase from the previous year.
CEO Satya Nadella emphasized the rapid growth of Microsoft’s AI offerings, noting that the company’s AI-related business has now surpassed a $13 billion annual revenue run rate, reflecting 175% year-over-year growth. “We are innovating across our tech stack and helping customers unlock the full ROI of AI,” Nadella said.
Microsoft Cloud was the company’s main growth engine, generating $40.9 billion in revenue-a 21% YoY increase.
Segment Performance:
- Productivity and Business Processes: Revenue grew 14% to $29.4 billion, led by Microsoft 365 Commercial(+15%) and LinkedIn (+9%). Dynamics 365 rose 19%.
- Intelligent Cloud: Revenue rose 19% to $25.5 billion, with Azure and other cloud services up 31%.
- More Personal Computing: Revenue remained stable at $14.7 billion, with Windows OEM and Devices up 4%, Xbox content and services up 2%, and Search & news advertising (excluding TAC) up 21%.
CFO Amy Hood said Microsoft continues to strike a balance between operational discipline and strategic investmentin AI and cloud infrastructure.
The company returned $9.7 billion to shareholders via dividends and stock buybacks in the quarter.
