Microsoft has reported its financial results for the third quarter of fiscal year 2025, ending March 31. The company has seen significant growth in this period, driven largely by its cloud and AI capabilities.
In this quarter, the tech giant posted a revenue of $70.1 billion, marking an increase of 13%. Its operating income rose to $32.0 billion, which is a 16% increase. Net income was up by 18% to $25.8 billion, with diluted earnings per share reaching $3.46, also an 18% rise. When adjusted for constant currency, revenue increased by 15%, operating income by 19%, and net income by 19%.
Satya Nadella, Microsoft's chairman and chief executive officer, stated, "Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers."
Amy Hood, Microsoft's executive vice president and chief financial officer, highlighted the performance of Microsoft Cloud, saying, "We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings."
In the company's Productivity and Business Processes segment, revenue increased by 10% to $29.9 billion. Microsoft 365 Commercial products and cloud services saw an 11% increase, while Dynamics products and cloud services grew by 11%, driven by a 16% increase in Dynamics 365 revenue.
The Intelligent Cloud segment generated revenue of $26.8 billion, a 21% rise, fueled by a 22% increase in server products and cloud services, particularly with Azure growing by 33%.
The More Personal Computing segment reported a 6% increase in revenue, reaching $13.4 billion. Notably, Xbox content and services revenue saw an 8% rise, and search and news advertising revenue, excluding traffic acquisition costs, increased by 21%.
During the third quarter of fiscal year 2025, Microsoft returned $9.7 billion to shareholders in dividends and share repurchases.
Microsoft's quarterly earnings announcement includes forward-looking guidance, which will be presented in its earnings conference call and webcast. The company emphasized its ongoing innovation with its extensive product releases and enhancements, focusing on helping customers improve productivity and security.
In its forward-looking statements, Microsoft acknowledged risks and uncertainties such as intense competition, potential cybersecurity threats, legal and regulatory challenges, and economic conditions that could affect its operations.
Microsoft aims to broadly and responsibly provide AI solutions, staying committed to empowering individuals and organizations globally, despite potential challenges highlighted in their statement.
The conference call will involve several Microsoft executives and will be accessible at the company's investor relations website. The webcast is set to be available for replay until April 30, 2026.