Microsoft CEO Satya Nadella speaks at an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, on April 4, 2025.
David Ryder
Microsoft shares rose more than 6% in extended trading on Wednesday after the company reported better-than-expected quarterly results driven by its Azure cloud business.
Here’s how the company performed in comparison with LSEG consensus:
- Earnings per share: $3.46 vs. $3.22 expected
- Revenue: $70.07 billion vs. $68.42 billion expected
Microsoft’s revenue grew 13% year over year in the quarter, which ended on March 31, according to a statement. Net income climbed 18% to $25.8 billion from $21.9 billion, or $2.94 per share, a year earlier.
The company’s Productivity and Business Processes segment, which contains Office software subscriptions and LinkedIn, contributed $29.94 billion in revenue. The total was up 10% but above the $29.57 billion consensus among analysts polled by StreetAccount.
Microsoft’s Intelligent Cloud unit that includes the Azure cloud produced $26.75 billion in revenue, up around 21% and more than StreetAccount’s consensus of $26.16 billion.
The company’s Azure revenue grew 33%, with 16 points of the growth associated with AI. Analysts polled by StreetAccount and CNBC had anticipated 30.3% and 29.7% Azure growth, respectively.
Revenue from the More Personal Computing unit, containing Windows, search advertising, devices and video game consoles, came to $13.37 billion. The figure was up 6% and higher than StreetAccount’s $12.66 billion consensus.
Microsoft said sales of devices and of Windows operating licenses to device makers increased 3%. Technology industry researcher Gartner estimated that PC shipments went up 4.8% in the quarter.
While earnings and revenue topped estimates, those results are backward looking. President Donald Trump’s sweeping tariffs were announced in early April, and investors will be focused on commentary on the upcoming earnings call for a sense of their likely impact on results this quarter and for the rest of the year.
During the quarter, which ended on March 31, Microsoft announced an adjustment to its relationship with key AI partner OpenAI. The company said it would have a right of first refusal when OpenAI wants new computing capacity, but won’t always have to deliver it. On the same day, OpenAI announced the Stargate AI infrastructure project alongside Oracle and SoftBank at the White House.
Microsoft said it had $623 million in “other expense” during the quarter. The sum includes recognized losses on equity method investments, including OpenAI. The figure was $2.29 billion in the prior quarter.
Executives will issue guidance and discuss the results on a call with analysts starting at 5:30 p.m. ET.
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