Microsoft has reported robust financial results for the third quarter of fiscal year 2025, driven by significant growth in its cloud computing and artificial intelligence (AI) services.
Financial Highlights
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Revenue: $70.1 billion, a 13% increase year-over-year.
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Net Income: $25.8 billion, up 18% from the previous year.
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Earnings Per Share (EPS): $3.46, surpassing analysts’ expectations.
Cloud and AI Growth
The Intelligent Cloud segment, which includes Azure, generated $26.8 billion in revenue, marking a 21% increase. Azure and other cloud services revenue grew by 33%, with AI services contributing 16 percentage points to this growth.
Other Business Segments
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Productivity and Business Processes: Revenue increased by 10% to $29.9 billion, driven by growth in Microsoft 365 and LinkedIn.
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More Personal Computing: Revenue rose by 6% to $13.4 billion, with notable contributions from Windows OEM and Devices, Xbox content and services, and search and news advertising.
Outlook
Microsoft forecasts continued strong performance in its cloud computing business, with expected growth of 34% to 35% in constant currency for the fiscal fourth quarter.
