
Microsoft Corporation has reported impressive financial results for the third quarter ending March 31, 2025, showcasing substantial growth in its key business areas, primarily driven by cloud computing and artificial intelligence services.
The company declared revenues of $70.1 billion for the quarter, representing a 13% rise compared to the same period last year. Operating income climbed to $32.0 billion, reflecting a 16% increase, and net income saw an 18% boost, reaching $25.8 billion. Diluted earnings per share also experienced an 18% increase, reaching $3.46.
Satya Nadella, Microsoft’s Chairman and CEO, pointed out that cloud and AI have become essential for business prosperity, allowing organizations to increase productivity, reduce costs, and foster growth. He affirmed that Microsoft is at the forefront of innovation across various technological domains, ranging from AI infrastructure and platforms to applications, providing transformative solutions for customers.
In a similar vein, Amy Hood, Executive Vice President and CFO, noted the company’s outstanding performance in the quarter, with Microsoft Cloud revenue hitting $42.4 billion—an impressive 20% year-on-year increase, fueled by strong and ongoing demand for its unique cloud offerings.
Segment Highlights:
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Productivity and Business Processes: Revenue grew by 10% to $29.9 billion. Both Microsoft 365 Commercial and Consumer products demonstrated double-digit growth, while LinkedIn generated a 7% increase in revenue and Dynamics products and services rose by 11%.
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Intelligent Cloud: This segment recorded revenue of $26.8 billion, a 21% increase, driven by a 22% rise in server products and cloud services. Azure and other cloud services reported remarkable growth of 33%.
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More Personal Computing: Revenue from this segment amounted to $13.4 billion, reflecting a 6% rise. Windows OEM and devices revenue increased by 3%, Xbox content and services grew by 8%, and search and news advertising revenue surged by 21%.
During this quarter, Microsoft returned $9.7 billion to shareholders via dividends and share repurchases.
In related news, Meta Platforms, Inc. also disclosed positive financial results for the same quarter, reporting revenue of $42.31 billion, a 16% year-over-year growth. Meta CEO Mark Zuckerberg stated, "We’ve had a strong start to an important year. Our community continues to grow, and our business is performing very well. We’re making substantial progress on AI glasses and Meta AI, which now boasts nearly 1 billion monthly active users."
Both Microsoft and Meta are capitalizing on the growing demand for AI and cloud solutions, setting an exciting competitive landscape for the upcoming year in the digital market.
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