Microsoft delivered impressive Q4 2025 results with $76.4 billion in revenue, beating analyst estimates by $2.59 billion. The company demonstrated 18% growth compared to the same period last year.
G. Ostrov
Technology giant Microsoft concluded its fourth quarter of fiscal year 2025 with outstanding results, demonstrating consistent growth across all key business segments. The company's revenue reached $76.4 billion, representing an 18% increase compared to the same period last year and significantly exceeding analyst forecasts of $73.81 billion.
Cloud Technologies Continue as Growth Engine
The Microsoft Cloud segment continues to show impressive momentum with revenue of $42.4 billion, exceeding expectations and showing 20% year-over-year growth. Cloud segment gross margin was 69%, though it decreased by 3 percentage points due to scaling AI infrastructure investments.
Microsoft's AI business achieved particularly impressive results, surpassing an annual revenue run rate of $13 billion with 175% year-over-year growth. This underscores the success of the company's strategic investments in AI technologies and their successful commercialization.
Windows and Xbox Show Positive Momentum
The More Personal Computing segment also demonstrated strong results. Windows revenue increased by $1.7 billion or 8%, driven by growth in both Windows Commercial and Windows OEM segments. Windows Commercial showed 11% growth driven by demand for Microsoft 365, while Windows OEM revenue increased 7%.
The Xbox gaming division demonstrated impressive revenue growth of $6.0 billion or 39%, primarily driven by Xbox content and services growth. Xbox content and services revenue increased 50%, with 44 percentage points coming from the Activision Blizzard acquisition. Although Xbox hardware revenue decreased 13% due to lower console sales volume, strong digital content performance more than compensated for this decline.
Financial Performance Exceeds Expectations
Microsoft's operating income reached $34.3 billion, demonstrating healthy operational profitability. Earnings per share came in at $3.65, beating analyst estimates of $3.37. These results confirm the effectiveness of the company's operational model and successful cost management even amid significant AI infrastructure investments.
The company's net income reached $21.2 billion, representing 12% growth compared to the same period last year. These metrics demonstrate that Microsoft is successfully monetizing its investments in new technologies.
Future Outlook
The fourth quarter results demonstrate that Microsoft's strategy of developing cloud technologies and artificial intelligence is bearing tangible fruit. The company continues to strengthen its position in the enterprise solutions segment while simultaneously developing consumer products and gaming ecosystem.
Investors are particularly closely watching Microsoft's capital expenditures and cloud revenue growth, as these metrics are key indicators of the company's long-term success in the era of digital transformation and AI.
Official information about financial results can be found on Microsoft's official investor website.
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