Microsoft is a global technology company known for its innovations in software, hardware, cloud computing, and artificial intelligence. The company, founded by Bill Gates and Paul Allen in 1975, transformed personal computing with Windows and Office.
Microsoft now offers a wide range of products, including Azure cloud services, Surface devices, and Microsoft 365, serving billions of customers. Its mission is to empower individuals and organizations while focusing on sustainability, inclusivity, and addressing global challenges through technology.
Microsoft’s commitment to sustainability and corporate social responsibility is evident in its goals, such as achieving carbon negativity by 2030.
Microsoft Fiscal Q3 2025
Microsoft (MSFT) reported strong financial performance in Q3, 2025 with revenue of $70 billion, up 13% year-over-year. Also, operating income rose 16% to $32 billion and net income increased 18% to $25.8 billion.
Moreover, diluted earnings per share grew 18% to $3.46, reflecting the continued success of its Cloud and AI divisions.
Business Highlights
- Productivity and Business Processes: Revenue soared to $29.9 billion (+10%), fueled by growth in Microsoft 365 services, LinkedIn (+7%), and Dynamics (+11%).
- Intelligent Cloud: Dominating the cloud space with $26.8 billion (+21%) in revenue, led by a stunning 33% surge in Azure and other cloud services.
- More Personal Computing: Revenue hit $13.4 billion (+6%), driven by growth in Windows OEM, Xbox content (+8%), and search advertising (+21%).
- Shareholder Returns: A massive $9.7 billion was returned to shareholders through dividends and share repurchases, cementing Microsoft’s commitment to investor value.
Boards Statements
Satya Nadella, chairman and chief executive officer of Microsoft, emphasized that cloud and AI are crucial for businesses to enhance productivity, reduce costs, and accelerate growth. He highlighted Microsoft’s innovation across the stack, from AI infrastructure and platforms to applications, to better serve customers.
Amy Hood, executive vice president and chief financial officer, reported a strong quarter, with Microsoft Cloud revenue reaching $42.4 billion. This reflects a 20% year-over-year increase, driven by sustained demand for the company’s unique offerings.
Impact on the Stock Market
Microsoft’s strong Q3 FY25 earnings had a positive impact on its stock. The company exceeded expectations with 13% revenue growth and an 18% increase in net income. These reflects robust performance in its Cloud and AI divisions.
Following the announcement, Microsoft shares surged over 8% in after-hours trading, reflecting investor confidence in its continued growth and innovation.
