Microsoft | 10-Q: Q2 2025 Earnings Report

Microsoft reported robust financial results for Q2 FY2025, with revenue increasing 12% to $69.6 billion and operating income rising 17% to $31.7 billion. Net income grew 10% to $24.1 billion, while diluted earnings per share reached $3.23. Microsoft Cloud revenue surged 21% to $40.9 billion, with AI services contributing 13 percentage points of Azure's 31% growth.The company demonstrated strong performance across segments, with Productivity and Business Processes revenue up 14% to $29.4 billion, driven by Microsoft 365 Commercial cloud growth of 16%. Intelligent Cloud revenue increased 19% to $25.5 billion, powered by Azure and other cloud services. More Personal Computing revenue remained stable at $14.7 billion, with Windows OEM and Devices revenue growing 4%.Looking ahead, Microsoft continues to invest heavily in AI infrastructure and capabilities, though this has impacted gross margins. The company maintains strong operational momentum with Microsoft 365 Consumer subscribers growing 10% to 86.3 million. Management highlighted the successful integration of Activision Blizzard and expanded strategic partnership with OpenAI, positioning Microsoft for continued growth in cloud and AI services.

Microsoft reported robust financial results for Q2 FY2025, with revenue increasing 12% to $69.6 billion and operating income rising 17% to $31.7 billion. Net income grew 10% to $24.1 billion, while diluted earnings per share reached $3.23. Microsoft Cloud revenue surged 21% to $40.9 billion, with AI services contributing 13 percentage points of Azure's 31% growth.The company demonstrated strong performance across segments, with Productivity and Business Processes revenue up 14% to $29.4 billion, driven by Microsoft 365 Commercial cloud growth of 16%. Intelligent Cloud revenue increased 19% to $25.5 billion, powered by Azure and other cloud services. More Personal Computing revenue remained stable at $14.7 billion, with Windows OEM and Devices revenue growing 4%.Looking ahead, Microsoft continues to invest heavily in AI infrastructure and capabilities, though this has impacted gross margins. The company maintains strong operational momentum with Microsoft 365 Consumer subscribers growing 10% to 86.3 million. Management highlighted the successful integration of Activision Blizzard and expanded strategic partnership with OpenAI, positioning Microsoft for continued growth in cloud and AI services.