Microsoft Earnings release FY25 Q4

The Microsoft earnings call happened a few days ago. This was their review of the entire Fiscal Year 2025 which ended 30th of June 2025. We’re already in the FY26 Q1 of the Microsoft fiscal year, but it is well worth reviewing the numbers that they have released, as it is another astounding year for Microsoft.

Review Financial Year 2025 Q4

First the numbers for the last quarter:

• Revenue was $76.4 billion and increased 18%
• Operating income was $34.3 billion and increased 23%
• Net income was $27.2 billion and increased 24%
• Productivity and Business Processes:
  • Microsoft 365 Commercial products revenue up 16%
  • Microsoft 365 Consumer products revenue up 21%
  • LinkedIn revenue up 9%
  • Dynamics products revenue up 18%
• Intelligent cloud: Server products and cloud services revenue increased 27%
• More Personal Computing:
  • OEM and Devices up 3%
  • Xbox content and services up 13%
  • Search and news advertising up 21%

Outlook for Financial Year 2026 Q1

• Productivity Business Processes revenue of $32.2 billion (13/14 % growth)
• Intelligent cloud revenue of $30.1 billion (37% growth)
• More Personal Computing revenue of $12.4 billion (mid to high single digit growth)

Key Takeaways

In my opinion, these were the main takeaways:

• A record fiscal year for Microsoft, with $281 billion in revenue, up 15%.
• Microsoft cloud revenue was $168 billion, which is a growth percentage of 23%.
• Azure surpassed $75 billion and is up 34% year-over-year, driven by growth on all workloads, but a massive increase in the AI space
• Microsoft states to now have over 400 datacenters in 70 regions, more than any other cloud provider and every Azure region is now AI first
• Microsoft introduced the Microsoft Sovereign Cloud, their comprehensive solution spanning both public and private cloud deployments
• Microsoft has been investing time and energy into Fabric, and over 25,000 customers worldwide are using the Fabric solution (up 55% year-over-year)
• The Copilot family has surpassed 100 million active users across commercial and consumer
  • Notably, Barclays will roll out M365 Copilot to 100k employees, UBS will roll out 55k users and companies like Adobe, KPMG and Wells Fargo are rolling out well over 25k seats
  • Customers created 3 million agents this year, using SharePoint and Copilot Studio
  • GitHub Copilot surpasses 20million users
  • Dragon Copilot is going to be making waves in the coming year. Some hospitals in the US have already successfully launched their implementation with one hospital stating to have saved more than 100,000 hours through this solution

Licensing Expert’s Insights

These are staggering numbers — and once again, it raises the question: when does this level of growth become unsustainable? Microsoft has an uncanny ability to stay ahead of the curve, consistently pivoting to the right IT trends at just the right time. Whether it was cloud, subscription models, or now the AI boom, they’ve managed to position themselves as a central player every step of the way.

What’s particularly fascinating is the contrast: while the company faces an unprecedented exodus of employees and a shrinking bottom line, its profit margins continue to grow. That’s not something you see every day — and it speaks to how strategically Microsoft has structured its business, especially with its high-margin cloud and AI services.

As we move into another turbulent year, I’m especially curious to see how the current macro-political and economic climate will influence their numbers — if it has any real effect at all. Will we finally see a shift, or is Microsoft still just getting started?

Let me know what you think — always keen to hear other perspectives.