Microsoft Reports Q4 Revenue of $76.4bn, Azure Reaches $75bn Annual Revenue Milestone

Microsoft's annual cloud revenue reached $75 billion, up 34% from last year. The company's quarterly profit increased 24% to $34.3 billion, beating expectations. Microsoft's Azure cloud business is a centerpiece of its AI efforts, and the company now has over 400 data centers across six continents. The company's workforce numbers remain unchanged at 228,000 full-time employees.

Microsoft Corp. (NASDAQ: MSFT) reported robust financial results for the fourth quarter of fiscal year 2025, with significant growth driven by its cloud and AI initiatives. The company's quarterly revenue reached $76.4 billion, marking an 18% increase year-over-year (YOY) [1]. This growth was primarily driven by Microsoft Cloud revenue, which surged to $46.7 billion, up 27% YOY [1]. The company's operating income also increased by 23% YOY to $34.3 billion, while net income grew by 24% to $27.2 billion [1].

Microsoft's Azure cloud business was a key driver of this growth, with revenue reaching $75 billion, up 34% YOY [1]. The company's AI efforts are centered around Azure, which has now expanded to over 400 data centers across six continents. Microsoft's workforce remained stable at 228,000 full-time employees [1].

The company's productivity and business processes segment also performed well, with revenue increasing by 16% YOY to $33.1 billion. Microsoft 365 Commercial cloud revenue grew by 18% YOY, while Microsoft 365 Consumer cloud revenue increased by 20% YOY [1]. Additionally, LinkedIn revenue increased by 9% YOY, and Dynamics products and cloud services revenue grew by 18% YOY, driven by Dynamics 365 revenue growth of 23% YOY [1].

Microsoft returned $9.4 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2025 [1]. For the full fiscal year 2025, Microsoft's revenue increased by 15% YOY to $281.7 billion, operating income grew by 17% YOY to $128.5 billion, and net income increased by 16% YOY to $101.8 billion [1].

Microsoft's strong performance underscores the growing importance of cloud and AI technologies in driving business transformation. The company's continued investment in these areas positions it well to capitalize on future growth opportunities.

References:
[1] Microsoft Corporation. (2025, July 30). Microsoft Cloud and AI Strength Fuels Fourth Quarter Results. Retrieved from https://www.microsoft.com/en-us/investor/earnings/fy-2025-q4/press-release-webcast