Microsoft Just published The third quarter of its financial results 2025. The software maker achieved $ 70.1 billion of revenues and a net income of $ 25.8 billion during the third quarter. The revenue increased 13 percent, and net income increased by 18 percent. Microsoft was expected to report 68.42 billion dollars in revenues, and thus the results won the Wall Street expectations.
Cloud growth seems to be the main driver to improve revenue, as Microsoft Cloud revenue reached 42.4 billion dollars, an increase of 20 percent. Microsoft did not divide AI’s revenues, so it’s still exactly the growth of this part of its business.
With all eyes on the effect of Trump’s tariff and spending on consumers, Microsoft has also reported the growth of Windows OEM revenues and 3 percent devices on an annual basis. Companies and consumers upgrade computers and laptops before the end of life at Windows 10 in October, but there has been no significant rise in Windows OEM revenues so far. Microsoft says the growth of Windows OEM was partial to “the remaining stock levels high due to the uncertainty”.
Microsoft now combines surface revenues and Windows OEM revenues, so it is no longer clear how to do its surface line. Microsoft did not launch any new consumer surface devices in the last quarter, but the company started selling INTEL versions that are powered From Surface Pro 11 and surface laptop 7 in February for companies. Microsoft is also It is rumored that it is launched Surface Pro versions and surface laptops soon.
On the side of the games, Microsoft warned in the last quarter of the decrease in the revenue of Xbox devices and made again. Xbox devices decreased by 6 percent in this quarter, during a period when Microsoft launches a variety of games in Game Pass. Total game revenue in Microsoft by 5 percent.
The Xbox content and services, which includes Game Pass, increases by 8 percent. Microsoft does not reveal any new subscriber numbers in the Pass game, and the last time we got it on an update in February 2024 when Microsoft revealed the existence 34 million subscribersIncluding Xbox Pass Core (formerly Xbox Live Gold).
Over the past year, Microsoft has been entering forward with its strategy to bring more exclusive Xbox games to PlayStation and Nintendo Switch. This step has proven to be successful, with Preormers Indiana Jones and the Great Circle and Forza Horizon 5 The Sony PlayStation Store is at the forefront of last month.
“We have ended the quarter as the best publisher by Preormers and Preinstalls on both Xbox and PlayStation,” said Satia Nadella, CEO of Microsoft. The revenue of PC Game Pass increased by 45 percent on an annual basis, and “cloud games revealed a new record, with 150 million hours for the first time exceeding this quarter,” Nadila revealed.
Microsoft Xbox everywhere strategy – What I was covering closely for me Noteman Newsletter Over the past year – it will also include Nintendo Switch 2 addresses.
As always for Microsoft’s profits, the company’s office and cloud companies are once again the show stars. Microsoft 365 revenue for commercial and cloud services increased by 11 percent on an annual basis, and even office consumer increased 10 percent of revenues. Microsoft subscribers number 365 up to 87.7 million now.
Microsoft AI office features collected the office In Microsoft 365 personal and family subscriptions earlier this year and raised prices. Previously, Microsoft 365 subscribers had to pay an additional $ 20 per month to get Copilot inside Office applications such as Word, Excel and PowerPoint Part of the Copilot Pro subscriptionBut Microsoft now offers AI features within Microsoft 365 applications for an additional $ 3 per month.
The current subscribers were able to cancel the subscription to the features of artificial intelligence and not suffer from an increase in prices, but it is not clear how clear he has already decided to do so. Microsoft notes that it has seen “growth in revenue for each user” from increasing the January prices, which was partly compensated by “Constant Mix” to $ 1.99 per month per month Microsoft 365 subscription.
Microsoft’s revenues increased in what you call 21 percent on an annual basis to $ 26.8 billion, which increases twice the revenue resulting from Windows, Xbox, Search and News Advertising (more personal computing). Service products and cloud services revenues increased by 22 percent, with AZURE growth by 33 percent.
Update, April 30An article updated with comments from the CEO of Microsoft Satya Nadella.
