Microsoft Has just been posted The third quarter of its 2025 financial results. The software maker earned $ 70.1 billion in revenue and net income of $ 25.8 billion during Q3. The revenue has increased by 13 %, and net revenue has increased by 18 %. Microsoft is expected to report income of $ 68.42 billion, so the results have defeated Wall Street expectations.
It seems that cloud growth is the main driver of a better income, which overall Microsoft cloud revenue reaches $ 42.4 billion, which is 20 % higher. Microsoft has not separated its AI’s income, so it is not yet clear how much that part of its business is increasing.
With all the eyes on Trump’s prices and the impact of consumer spending, Microsoft reported that Windows OEM and 3 % increased by year. Businesses and users are upgrading PC and laptops before the end of Windows 10 in October, but Windows OEM revenue has not yet increased. Microsoft says the growth of Windows OEM was partially “at the level of raising inventory levels due to tariff uncertainty.”
Microsoft now connects surface revenue with Windows OEM revenue, so it is no longer clear how its level line is doing. Microsoft has not launched any new consumer -level equipment in the recent quarter, but the company has begun selling versions powered by Surface Pro 11 and Surface Laptop 7 in February for business. Microsoft is also rumored to launch a small version of the level of supporter and surface laptop soon.
On the gaming side, Microsoft warned in the last quarter that the revenue of the Xbox hardware would decline and it had increased again. The Xbox Hardware is 6 % lower in the quarter, when the Microsoft Game Pass has been launching various sports. Microsoft has a 5 % increase in overall gaming revenue.
Xbox content and services, including the game pass, has an 8 % increase. Although Microsoft is not displaying any new game pass subscription numbers, and the last time we were updated, in February 2024, Microsoft revealed that there were 34 million users, including the Xbox Game Pass Core (before the Xbox Live Gold) members.
Over the past one year, Microsoft has been moving with its strategy to bring special games from the PlayStation and the Nintendo Switch to more than the Xbox. The move has proved to be a successful, which is pre -presenting Indiana Jones and the Great Circle And Forza Horizon 5 Last month Tapping at Sony’s PlayStore Store.
Microsoft’s Xbox strategies everywhere – which I have been closely covered in myself Notices In the last one year, Newsletter – I will also include the title of Nintendo Switch 2. Microsoft is producing a similar list of sports in Port Over this year on Switch 2.
As Microsoft’s earnings are always the case, the company’s office and cloud business are once again the stars of the show. The revenue of Microsoft 365 commercial products and cloud services increased by 11 % over the year, and even office consumers’ revenue increased by 10 %. Microsoft 365 users are now up to 87.7 million.
Microsoft bundled its office AI features in Microsoft 365 Personal and Family Subscription earlier this year and raised prices. Earlier, Microsoft 365 users had to pay $ 20 per month to get copyls inside office apps such as office apps as part of Coophot Pro Sub Scripping, but Microsoft now offers an additional $ 3 per month within Microsoft 365 apps. Current consumers have been able to get out of the features of the AI and do not want to face the price rise, but it is not clear how many people have decided to do so.
Microsoft’s income, which calls this intelligent cloud, has increased by 21 % year -on -year, which is $ 26.8 billion, which is absolutely double the revenue earned by Windows, Xbox, and Search and News Advertising (more personal computing). The revenue of server products and cloud services increased by 22 %, with azure growth 33 %.
Microsoft will now call an income at 5:30 pm and we will update this article with Microsoft CEO Satya Nadella and any relevant comments from CFOMi Hood.
