How did Microsoft's revenue and expenses evolve in Q2 2025?

Microsoft's revenue and expenses in Q2 2025 showed notable growth and strategic adjustments. 1. **Revenue Growth**: Microsoft's revenue increased by 12% year-over-year, reaching $69.6 billion. This growth was primarily driven by the remarkable surge in revenue from Azure, which reported a 21% revenue increase, reaching $40.9 billion. The Intelligent Cloud segment also saw a notable 19% revenue boost, thanks to Azure's success. 2. **Expense Management**: The company's operating income increased by 17% to $31.7 billion. This growth in operating income reflects effective expense management, as the company was able to capitalize on its revenue growth without a proportional increase in expenses. |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |MSFT|MSFT.O|Microsoft|2024 Q3|6.1858E10|2.1939E10|185| |MSFT|MSFT.O|Microsoft|2024 Q4|6.4727E10|2.2036E10|185| |MSFT|MSFT.O|Microsoft|2025 Q1|6.5585E10|2.4667E10|185| |MSFT|MSFT.O|Microsoft|2025 Q2|6.9632E10|2.4108E10|185| 3. **Profitability**: The net income of Microsoft in Q2 2025 was not disclosed, but the company's profitability improved with a significant increase in revenue and operating income. The growth in revenue and operating income indicates a strong financial performance, which is a positive signal for the company's profitability and future investments. 4. **Investment in Growth**: Microsoft's investment in growth areas such as AI and cloud services is evident from the 157% increase in AI service revenue and the expansion of its Copilot+ ecosystem. These investments are crucial for maintaining a competitive edge in the evolving tech landscape. In conclusion, Microsoft's Q2 2025 financial performance highlights the company's strategic focus on revenue growth and effective expense management. The significant revenue surge, particularly in Azure and the Intelligent Cloud segment, underscores Microsoft's successful positioning in the big data and AI landscape.