Microsoft ended its fiscal 12 months 2025 with robust fourth-quarter outcomes, underscoring the corporate’s continued dominance in cloud infrastructure and accelerated concentrate on AI-driven companies. For the quarter ending June 30, Microsoft reported $76.4 billion in income, an 18% enhance year-over-year.
The standout driver of this efficiency was Azure, which surpassed $75 billion in annual income – up 34% from the prior 12 months – cementing its function as a central engine in Microsoft’s development technique.
CEO Satya Nadella emphasised the centrality of AI and cloud to the corporate’s long-term route. “Cloud and AI is the driving pressure of enterprise transformation throughout each trade and sector,” he mentioned. “We’re innovating throughout the tech stack to assist prospects adapt and develop on this new period.” That innovation is being channeled primarily by Azure, the place Microsoft is integrating AI capabilities throughout infrastructure, platform, and software program layers.
The Clever Cloud phase, which homes Azure, generated $29.9 billion in This fall income, rising 26% year-over-year. Azure and different cloud companies have been up 39%, reflecting broad enterprise adoption of AI-enabled infrastructure. Microsoft’s funding in AI supercomputing infrastructure – mixed with choices like Azure OpenAI Service – has positioned it as a go-to platform for enterprises growing and deploying massive language fashions, real-time inference, and scalable AI workloads.
Microsoft Cloud total, which incorporates Azure, Microsoft 365, Dynamics, and different companies, reached $46.7 billion in quarterly income, up 27%. The corporate’s AI momentum was not restricted to infrastructure; enterprise purposes are more and more benefiting from embedded AI options. For instance, Microsoft 365’s Copilot options – constructed on Azure OpenAI – have begun rolling out throughout business and client platforms.
International AI Knowledge Heart Footprint
In Productiveness and Enterprise Processes, Microsoft 365 Industrial income grew 18%, fueled by demand for AI-enhanced productiveness instruments. Dynamics 365, Microsoft’s cloud-native enterprise purposes platform, grew 23% within the quarter, additionally boosted by AI-driven automation and analytics capabilities.
These beneficial properties come as Microsoft continues increasing its international AI knowledge heart footprint, reinforcing its capacity to help each foundational mannequin coaching and inference at scale. The corporate’s AI stack, tightly built-in from silicon to software program, is more and more differentiating Azure from rivals within the hyperscaler market.
For the total fiscal 12 months, Microsoft reported $281.7 billion in income, up 15% from 2024. Internet revenue rose 16% to $101.8 billion. As AI continues to reshape enterprise IT, Microsoft’s technique of deeply embedding AI into its infrastructure and purposes places it on the forefront of the following part of digital transformation.
