Microsoft | 10-Q: Q1 2025 Earnings Report

Microsoft reported robust financial results for Q1 FY2025, with revenue increasing 16% to $65.6 billion and net income rising 11% to $24.7 billion. Microsoft Cloud revenue grew 22% to $38.9 billion, while operating income increased 14% to $30.6 billion. The company maintained strong momentum in its AI initiatives, with Azure and other cloud services revenue growing 33%, including 12 points from AI services.The Productivity and Business Processes segment saw revenue rise 12% to $28.3 billion, driven by Microsoft 365 Commercial cloud revenue growth of 15%. Intelligent Cloud revenue grew 20% to $24.1 billion, primarily due to Azure's strong performance. More Personal Computing revenue increased 17% to $13.2 billion, boosted by Gaming revenue growth of 43% following the Activision Blizzard acquisition.Looking ahead, Microsoft continues to invest heavily in AI infrastructure and capabilities, with significant focus on scaling AI services across its product portfolio. The company's gross margin percentage decreased due to AI infrastructure scaling costs, while operating expenses increased 12% driven by Gaming and cloud engineering investments. Microsoft maintained strong cash flow with $34.2 billion from operations and returned $9.0 billion to shareholders through dividends and share repurchases.

Microsoft reported robust financial results for Q1 FY2025, with revenue increasing 16% to $65.6 billion and net income rising 11% to $24.7 billion. Microsoft Cloud revenue grew 22% to $38.9 billion, while operating income increased 14% to $30.6 billion. The company maintained strong momentum in its AI initiatives, with Azure and other cloud services revenue growing 33%, including 12 points from AI services.The Productivity and Business Processes segment saw revenue rise 12% to $28.3 billion, driven by Microsoft 365 Commercial cloud revenue growth of 15%. Intelligent Cloud revenue grew 20% to $24.1 billion, primarily due to Azure's strong performance. More Personal Computing revenue increased 17% to $13.2 billion, boosted by Gaming revenue growth of 43% following the Activision Blizzard acquisition.Looking ahead, Microsoft continues to invest heavily in AI infrastructure and capabilities, with significant focus on scaling AI services across its product portfolio. The company's gross margin percentage decreased due to AI infrastructure scaling costs, while operating expenses increased 12% driven by Gaming and cloud engineering investments. Microsoft maintained strong cash flow with $34.2 billion from operations and returned $9.0 billion to shareholders through dividends and share repurchases.