Microsoft announced impressive results for the fourth and final quarter of its 2025 fiscal year, posting $76.4 billion in revenue and $27.2 billion in net profit. This marks a significant 18% increase in revenue and a 24% rise in net profit compared to the same period last year.
Microsoft literally printed money
Cloud services once again served as the company’s largest source of revenue. Azure’s annual revenue surpassed $75 billion, growing 34% year-over-year, while its quarterly revenue growth was a robust 39%.
The report also noted a recovery in the PC market, gaining momentum as corporate customers upgrade their devices before Windows 10 support ends in October. Windows OEM and device revenue saw a 3% annual increase.
While the performance of Surface products was not disclosed separately (as Microsoft now combines Windows and device revenues), CFO Amy Hood said the company expects a 5% to 9% decline in both device and Windows OEM revenues in the next quarter. The full impact of the newly launched 12-inch Surface Pro and 13-inch Surface Laptop models, which were released mid-quarter, will be reflected in the upcoming earnings report.
Microsoft’s gaming division saw continued growth in its services. Xbox content and services revenue increased by 13% this quarter. Although the number of Game Pass subscribers wasn’t revealed, its annual revenue is nearing $5 billion for the first time. The monthly active user count in the gaming ecosystem reached 500 million.
This growth was driven by a new strategy, including releasing games like Forza Horizon 5 and Age of Mythology on PlayStation. The company also saw strong performance from Indiana Jones and the Great Circle, which topped the pre-order charts on the PlayStation Store. This quarter, Microsoft published six of the top 10 best-selling games on both Xbox and PlayStation.
On the hardware side, however, Xbox console sales declined, with hardware revenue dropping 22% quarterly and 25% annually. Despite this decrease in console sales, the gaming unit’s total annual revenue increased by $2 billion. Looking ahead, Microsoft is set to unveil the Xbox Ally portable gaming device and a playable demo of Hollow Knight: Silksong at the upcoming Gamescom event.
Finally, Microsoft 365 commercial cloud revenue grew by 18% year-over-year, while consumer cloud revenue increased by 20% thanks to recent price hikes for consumer plans. The total number of Microsoft 365 subscribers now stands at 89 million.
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