Microsoft Fiscal Year 2025 First Quarter Revenue Surpasses $65 Billion

Microsoft has concluded the initial quarter of its fiscal year 2025 as of September 30, 2024, and is now prepared to share its earnings results.

During Q1 of the 2025 fiscal year (note that the fiscal year and calendar year schedules differ), Microsoft reported a substantial revenue of $65.6 billion, marking a 16% rise compared to the same timeframe last year. Operating income also saw growth of 14%, totaling $24.7 billion. The company’s earnings per share stood at $3.30, reflecting a 10% increase over the previous year’s first quarter. Additionally, Microsoft noted a 12% rise in operating expenses, reaching $14.9 billion, attributed to the acquisition of Activision and investments in cloud services.

Amy Hood, Microsoft’s Chief Financial Officer and Executive Vice President, shared insights on the recent financial performance:

Our sales teams and partners executed strongly, providing an excellent start to our fiscal year, with Microsoft Cloud revenue hitting $38.9 billion, a 22% increase year-over-year.

The recent earnings report from Microsoft categorizes results into three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes division yielded $28.4 billion in revenue, reflecting a 12% increase (and a 15% increase in constant currency). Key achievements include:

a 13% uptick in Microsoft 365 Commercial products and cloud services
a 5% growth in Microsoft 365 Consumer products
a 10% rise in LinkedIn revenue
a 14% increase in revenue from Dynamics products and cloud services

Intelligent Cloud, encompassing Microsoft’s server offerings like Azure, generated $24.1 billion, representing a 20% increase year-on-year. The More Personal Computing sector, which includes Windows OEM, Xbox, and search division, brought in $13.2 billion, showing a remarkable 17% growth. Notably, gaming revenue surged by 43% thanks to the Activision acquisition, although Xbox hardware revenue experienced a 29% decline.

Furthermore, Microsoft disclosed that in the first quarter of the 2025 fiscal year, it returned $9 billion to its shareholders via dividends and share buybacks.

For more detailed information regarding Microsoft’s Q1 2025 fiscal results, visit the official website.

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