Microsoft simply posted the fourth and last quarter of its 2025 fiscal monetary outcomes. The software program maker made $76.4 billion in income and a internet revenue of $27.2 billion throughout This fall. Income is up 18 p.c, and internet revenue has elevated by 24 p.c.
Like clockwork, cloud providers are the sturdy level of Microsoft’s income this quarter. Azure income grew 39 p.c year-over-year, and Microsoft CEO Satya Nadella says “Azure surpassed $75 billion in income” for the whole monetary 12 months, up 34 p.c. The spectacular cloud earnings come simply weeks after the software program maker laid off as many as 9,000 staff earlier this month.
Microsoft’s Floor Laptop computer. Photograph by Chris Welch / The Verge
Home windows and Floor income
The PC market remains to be feeling the consequences of the Trump tariffs and client spending, whereas companies look to refresh PCs forward of Home windows 10’s finish of help in October. Consequently, Home windows OEM and gadgets income is up 3 p.c 12 months over 12 months, pushed by progress in Home windows OEM income.
Gartner stated earlier this month that PC shipments have been up greater than 4 p.c within the latest quarter, because of a Home windows 11 refresh cycle for desktop PCs. Microsoft primarily makes cash from Home windows via OEM income, the value that producers pay to license Home windows for laptops and PCs.
Whereas this time final 12 months Microsoft’s Floor income had been in decline for 2 years, Microsoft began combining Home windows and gadgets income collectively throughout this previous monetary 12 months, so it’s nonetheless not clear how Floor is performing.
Microsoft did launch two new Floor gadgets within the latest quarter, although: the 12-inch Floor Professional and 13-inch Floor Laptop computer. Each gadgets launched halfway via the quarter, so the total influence of gross sales on Home windows OEM and gadgets income received’t be felt till subsequent quarter.
The Xbox Sequence X console Photograph by Vjeran Pavic / The Verge
Xbox content material and providers income, which incorporates Xbox Recreation Cross, is up by 13 p.c this quarter. Microsoft nonetheless isn’t revealing any new Recreation Cross subscriber numbers, although, and the final time we acquired an replace was in February 2024, when Microsoft revealed there have been 34 million subscribers, together with Xbox Recreation Cross Core (beforehand Xbox Reside Gold) members.
Microsoft has been aggressively pushing forward with its technique to carry extra beforehand Xbox-exclusive video games to PlayStation and Nintendo Swap over the previous 12 months. Senua’s Saga: Hellblade II is arriving on PS5 subsequent month, alongside the unique Gears of Conflict as a remastered model. Microsoft additionally launched Forza Horizon 5 on PS5 earlier this 12 months, in addition to Age of Empires II: Definitive Version, Age of Mythology: Retold, and Indiana Jones and the Nice Circle.
Whereas the transfer to carry extra Xbox video games to PlayStation might need angered some followers, it has confirmed to be a profitable selection. Preorders for Indiana Jones and the Nice Circle and Forza Horizon 5 topped Sony’s personal PlayStation Retailer earlier this 12 months, and Circana revealed this week that Microsoft had six of the ten top-selling video games on PlayStation within the latest quarter.
Xbox {hardware} remains to be struggling, although. Xbox {hardware} income is down 22 p.c this quarter, regardless of a busy interval for Recreation Cross. General gaming income at Microsoft is up 10 p.c.
Microsoft’s Xbox in all places technique — which I’ve been masking carefully in my Notepad publication over the previous 12 months — can even embrace titles for the Nintendo Swap 2. It’s potential we would even see one throughout Nintendo’s Swap 2 associate Direct tomorrow.
Trying forward, Microsoft can also be heading to the Gamescom present subsequent month, the place it would let attendees play with its new Xbox Ally handheld gadgets. A playable demo of the long-awaited Hole Knight: Silksong can even be obtainable on the ROG Xbox Ally handhelds, as properly “a pair extra surprises on the present from our companions too.”
Microsoft 365 industrial cloud income grew by 18 p.c year-over-year, pushed by progress in income per consumer and partially to Microsoft 365 Copilot licenses. The January worth enhance to Microsoft 365 client plans has additionally contributed to twenty p.c of progress in Microsoft 365 Shopper cloud income. There at the moment are 89 million Microsoft 365 client subscribers, up 8 p.c year-over-year.
It’s Microsoft’s cloud progress that’s actually the story this quarter as soon as once more. Azure and different cloud providers grew by 39 p.c, a giant soar that was pushed by progress throughout all workloads, based on Microsoft. Server merchandise income declined 2 p.c, an indication that Microsoft’s clients are more and more shifting to its cloud choices.
LinkedIn income was additionally up 9 p.c this quarter, with periods additionally rising by 7 p.c. Microsoft says it has additionally seen “file engagement” with LinkedIn this quarter. Even Microsoft’s search and information promoting income is up 21 p.c, after it has overhauled Bing with AI-powered outcomes and options.
Microsoft will now maintain an earnings name at 5:30PM ET / 3:30PM PT, and we’ll replace this text with any related feedback.
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