10 hours Ago By Paul Thurrott
Microsoft reported that it earned a net income of $25.8 billion on revenues of $70.1 billion in the quarter ending March 31, 2025.
Those figures represent gains of 18 percent and 13 percent, respectively year-over-year (YOY). “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” . “From AI infra[structure] and platforms to apps, we are innovating across the stack to deliver for our customers.
” Sign up for our new free newsletter to get three time-saving tips each Friday — get free copies of Paul Thurrott's Windows 11 and Windows 10 Field Guides (normally $9.99) as a special welcome gift! Intelligent Cloud–Azure, server, and enterprise and partner services–wasn’t far behind with $26.8 billion in revenues, and its revenue growth of 21 percent was much higher than Microsoft’s other businesses.
Azure and cloud services revenue grew 33 percent in the quarter, while Server products and cloud services revenue grew 22 percent. Microsoft 365 commercial seats were up 7 percent while the Microsoft 365 consumer subscriber base grew 9 percent to 87.7 million.
More Personal Computing is where Microsoft lumps Windows revenues from PC makers and consumers, Surface, Xbox and gaming, and search and new advertising. This has been the company’s smallest business unit for years, at it added $13.4 billion in revenues with 6 percent growth YOY.
Windows revenues from PC makers and Surface grew 3 percent in the quarter, Microsoft said, driven by growth from PC makers. Gaming revenue was up 5 percent overall, and Xbox content and services revenue grew 8 percent, but Xbox console revenue were down 6 percent. Search and news ad revenue was up 21 percent.
Apologies, because of my travel schedule I won’t have time to write a longer analysis piece. But I will update this article as possible as Microsoft releases more information. –Paul Paul Thurrott is an award-winning technology journalist and blogger with 30 years of industry experience and the author of 30 books.
He is the owner of and the host of three tech podcasts: with Leo Laporte and Richard Campbell, , and with Brad Sams. He was formerly the senior technology analyst at Windows IT Pro and the creator of the SuperSite for Windows from 1999 to 2014 and the Major Domo of Thurrott.com while at BWW Media Group from 2015 to 2023.
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