Microsoft's Q1 2025 Earnings Soar; LinkedIn Up 10%, Cloud Revenue Climbs 22%

Software giant Microsoft just rolled out its earnings report with a strong performance update and a solid start to the 2025 fiscal year.

The Q1 saw Microsoft generating revenue worth $65.6B which is a 16% increase when compared to the previous year. After that, operation income rose 14% to equal $24.7 billion. As a whole, the software giant’s reportings were $3.30 earnings per share which is again a 10% rise during the same time in 2024. There was notable mention of a rise in expenses for operations which rose to $14.9B thanks to Activision purchases and investments across cloud engineering.

The executive VP and the CFO for Microsoft shared the following about the firm’s new report:

They noted the sales teams displayed strong execution and partners delivered a solid start to this fiscal year. The revenue for Microsoft Cloud hit $38.9 billion which is again a 22% YoY rise.

The company likes to divide its financial reports into three separate domains including Productivity, Intelligent Cloud, and Personal Computing. When you look at that more closely, it means a 13% rise in commercial products and cloud services, a 5% rise in consumer products, a 10% rise in LinkedIn’s revenue, and a 14% rise in Dynamics products.

Intelligent Cloud entails Microsoft’s server products like Azure which rolled out $24 billion in revenue and a 20% YoY increase. Its More Personal Computing domain featured Windows OEM, search, and Xbox which generated $13.2 billion as far as revenue is concerned. That’s a massive 17% rise. Gaming revenue rose 43% thanks to its Activision acquisition while the revenue for Xbox hardware fell 29%.

The company similarly spoke about returning $9B to its shareholders in dividend forms while sharing repurchases in Q1 of 2025.

Image: DIW-Aigen

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