• by Laurie Sullivan  @lauriesullivan, April 30, 2025

Microsoft reported strong growth for the first quarter in 2025, up about 13% year-over-year to $70.1 billion. Net income came in at $25.8 billion, and operating income came in at $32 billion.

Revenue from the personal computing business rose 6% to $13.4 billion. Part of that increase came from search and news advertising revenue.

Excluding traffic acquisition costs, revenue rose 21%. Windows OEM and devices revenue increased 3%, and Xbox content and services revenue rose 8%.

Satya Nadella, chairman and chief executive officer of Microsoft, said the company benefited from demand for artificial intelligence and cloud computing, which have become essential for businesses.

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," stated Satya Nadella, chairman and chief executive officer of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

Microsoft delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20%.

Revenue in productivity and business processes was $29.9 billion and contributed 10% of which LinkedIn revenue rose 7%.

Microsoft 365 commercial products and cloud services revenue rose 11% driven by Microsoft 365 commercial cloud revenue growth of 12%.

The company’s stock shares rose more than 6% in after-hour trading.