Microsoft has capped its fiscal year 2025 with a robust set of earnings, reporting a stellar 24% growth in net profit to $27.2 billion in the fourth quarter, thanks to explosive growth in its cloud computing segment.
The company’s revenue for the April–June quarter soared to $76.4 billion, an 18% increase year-over-year. This performance not only exceeded Wall Street expectations but reinforced Microsoft’s position at the forefront of the global shift to cloud and artificial intelligence (AI) solutions.
Leading Microsoft’s charge is Azure, its flagship cloud platform, which recorded a 39% year-over-year jump in Q4 revenue. Over the entire fiscal year, Azure’s revenues eclipsed the $75 billion mark; a whopping 34% annual growth.
Microsoft CEO Satya Nadella credited this momentum to broad-based demand: “Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era,” he said during the earnings announcement.
AI is playing a pivotal role in Microsoft’s financial success. Significant investments most notably partnerships with OpenAI have made Azure a top choice for companies looking to tap into generative AI and advanced data analytics. Satya Nadella emphasized that “nearly every workload across enterprise customers is now being run in Azure,” and AI services such as Azure OpenAI are rapidly gaining adoption.
Microsoft’s blockbuster results sent its stock soaring over 6% in after-hours trading as investors responded enthusiastically to the cloud division’s performance and AI strategy.
While Microsoft still trails Amazon Web Services in total cloud revenue, it consistently gains market share, with CIO surveys showing Azure as the preferred public cloud vendor for the next several years.
The company’s rapid expansion also comes amid continued investments in new data centers (now more than 400 sites globally) and additional enhancements to its AI and security platforms all factors expected to drive future growth.