Cloud Strength Drives Microsoft's 1Q25 Results

During the first quarter of the fiscal year 2025, which ended September 30, Microsoft continued its YoY quarterly growth. The rise was again pushed by cloud services.

The company's revenue in the period was $65.6 billion and increased 16% YoY. Operating income was $30.6 billion and grew 14%, as Net income increased 11% to $24.7 billion. Diluted earnings per share was $3.30 and increased 10%.

“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” said Satya Nadella, chairman and CEO of Microsoft. “We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.” “Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year,” added Amy Hood, executive vice president and CFO.

Revenue in Productivity and Business Processes was $28.3 billion and increased 12%. Intelligent Cloud revenue grew 20% to $24.1 billion. Revenue in More Personal Computing was $13.2 billion and increased 17%. Microsoft returned $9.0 billion to shareholders in the form of dividends and share repurchases in the first quarter of fiscal year 2025.