Microsoft kicked off its fiscal year with a strong performance, delivering double-digit growth in both revenue and profit. This growth was driven by increased demand for Microsoft’s cloud platform and strong execution by its sales teams and partners.
According to CEO Satya Nadella, Microsoft’s AI business is on track to surpass an annual revenue run rate of US$10 billion’ in Q2 2025. This achievement would mark it as the fastest-growing segment in the company’s history to reach this milestone.
| Financial indicator |
Q1 2024 (US$ million) |
Q1 2025 (US$ million) |
Percentage change |
| Revenue |
56,517 |
65,585 |
+16.0% |
| Productivity and Business Processes |
25,226 |
28,317 |
+12.3% |
| Intelligent Cloud |
20,013 |
24,092 |
+20.4% |
| More Personal Computing |
11,278 |
13,176 |
+16.8% |
| Operating income |
26,895 |
30,552 |
+13.6% |
| Net income |
22,291 |
24,667 |
+10.7% |
Overall revenue increased 16.0% year-on-year to US$65.6 billion in Q1 2025 due to solid performances across all its business segments. There was a significant rise in the number of high-value contracts for both Azure and Microsoft 365.
Revenue from the Productivity and Business Processes segment grew 12.3% year-on-year to US$28.3 billion in Q1 2025, driven by the 15% growth in Microsoft 365 commercial...
