Microsoft (NASDAQ: MSFT) today released its first quarter of fiscal year 25 financial results after the market close, reporting revenue of $56.5 billion and earnings per share (EPS) of $2.99. These numbers beat consensus projections, which estimated revenue at $54.5 billion and EPS at $2.65.
A key driver was Microsoft’s Intelligent Cloud division, which includes Azure, and saw revenue rise 19% to $24.3 billion. Microsoft’s Azure cloud business, a direct competitor to Amazon Web Services and Google Cloud, grew 29%, signaling continued demand for cloud and AI-powered solutions. Additionally, the Productivity & Business Processes segment, which includes Office 365 and LinkedIn, increased 13%, driven by increased subscriptions and LinkedIn’s continued popularity among business users.
The report highlighted how AI integration is reshaping Microsoft’s product offerings, enhancing the functionality of the Office suite and improving customer value. CEO Satya Nadella highlighted the company’s commitment to “responsible AI” as a means to foster innovation, while addressing growing concerns about the ethical use of AI. Microsoft also revealed ongoing investments in AI research and its partnership with OpenAI to develop advanced generative AI models.
However, Microsoft’s More Personal Computing division saw a slight decline, with revenue falling 3% year-over-year to $13.7 billion, reflecting continued weakness in the global PC market. However, the division’s performance exceeded expectations, partly due to modest growth in commercial Windows products and increased demand for Xbox content.
Microsoft’s forward-looking statements included an expected increase in demand for AI-powered cloud solutions, and the company expected revenue growth in coming quarters as businesses adopt these technologies on a large scale.