Microsoft's revenue rises 13.3% to $70.07 billion in the quarter to Mar 31, 2025 as gaming revenue grows 5%

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Microsoft reported revenue of $70.07 billion for the quarter from Jan 1 to Mar 31, 2025, up 13.3% from $61.86 billion a year earlier. Its 10-Q, the quarterly report US-listed companies file with the Securities and Exchange Commission, calls the period the third quarter of fiscal year 2025. Operating income, the profit from running the business before interest and tax, was $32 billion, up 16.0% from $27.58 billion. Net income was $25.82 billion, up 17.7% from $21.94 billion, and diluted earnings per share were $3.46 against $2.94. The company says foreign currency had an unfavorable impact of 2% on revenue, and its earnings release puts revenue growth at 15% in constant currency, a non-GAAP measure that leaves out the effect of exchange-rate changes.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13^,14^,15^,16

Gaming revenue was $5.72 billion against $5.45 billion a year earlier, an increase of $270 million, or 5%. The company ties the increase to Xbox content and services, whose revenue rose 8% on growth in Xbox Game Pass, Call of Duty and Minecraft, while Xbox hardware revenue fell 6%. Xbox content and services covers first- and third-party content, including games and in-game content, Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, advertising and third-party disc royalties. Separately, Windows OEM and Devices revenue rose 3%, with inventory levels remaining elevated because of tariff uncertainty, the company says.17^,18^,19^,20^,21

Below operating income, other income and expense was a net expense of $623 million, against $854 million a year earlier. The company says its other, net line, an expense of $1.013 billion against $486 million, primarily reflects net recognized losses on equity method investments, including OpenAI.22^,23^,24

Revenue grew in every segment: Intelligent Cloud on Azure, Productivity and Business Processes on Microsoft 365 Commercial cloud, and More Personal Computing on search and news advertising. Microsoft Cloud revenue rose 20% to $42.4 billion, and Azure and other cloud services revenue grew 33%, including 16 points from AI services. Chief executive Satya Nadella said in the earnings release, which Microsoft filed in an 8-K (the form for reporting events as they happen) on the same day as the 10-Q, that cloud and AI are the essential inputs for every business to expand output, reduce costs and accelerate growth. The release says Microsoft returned $9.7 billion to shareholders through dividends and share repurchases in the quarter.25^,26^,27^,28^,29^,30^,31

Our records hold the text of the report's management discussion and one note to its financial statements, but not its other exhibits, and they cannot tell whether the year-earlier figures were restated.32^,33