• by Laurie Sullivan , July 30, 2025

Microsoft reported that profits for the second-quarter calendar year in 2025 soared as revenue from its cloud-computing division surged to a record level, driven by demand for artificial intelligence (AI) services.

Earnings revenue rose 18% to $76.4 billion for the period, which represents the company's fiscal fourth quarter and second quarter in the 2025 calendar year. 

“Cloud and AI is the driving force of business transformation across every industry and sector,” Microsoft CEO Satya Nadella stated. The company has invested billions in infrastructure to support the growth.

Microsoft's Azure cloud-computing business had another quarter of growth.

For the first time, the company disclosed revenue specifically from its Azure cloud-computing division, which it said rose 34% to $75 billion for the company’s fiscal year that ended in June.

In the calendar-year second quarter, Microsoft’s overall cloud business posted revenue of $46.7 billion -- up from $36.9bn in the same period a year earlier.

Advertising revenue for Microsoft’s More Personal Computing business segment rose 9% in revenue to $13.5 billion.

Broken down into businesses, Windows OEM and Devices revenue increased 3%, Xbox content and services revenue increased 13%, and search and news advertising revenue excluding traffic acquisition costs increased 21%.

The Productivity and Business Processes segment also experienced significant growth, with revenue rising 16% to $33.1 billion, fueled by Microsoft 365 and Dynamics 365.

LinkedIn contributed a 9% increase in revenue. 

Microsoft reported total revenue of $281.7 billion for the full fiscal year 2025 -- up 15% compared with the previous fiscal year.

Net income for the quarter climbed to $27.2 billion, up 24%.