Microsoft delivered strong financial results that exceeded expectations, driven by the rapid adoption and “diffusion” of AI technology across its business. AI is now being integrated into a wide range of applications and platforms, at a much faster rate than previous technology shifts. The company described this aggressive growth as the start of a new, massive “S-curve,” which is expected to compound over time to sustain long-term growth.
Q4 2024 (US$ million)Q4 2025 (US$ million)Percentage changeRevenue64,72776,441+18.1%Productivity and Business Processes28,62733,112+15.7%Intelligent Cloud23,78529,878+25.6%More Personal Computing12,31513,451+9.2%Operating income27,92534,323+22.9%Net income22,03627,233+23.6%
The year-on-year growth in overall revenue was mainly driven by Azure and Microsoft 365. About 98% of the revenue was recurring and subscription-based (annuity mix). The revenue growth from the Productivity and Business Processes segment was driven by Microsoft 365 products and cloud services. The Intelligent Cloud segment is the fastest-growing segment, led by growth in Azure and other cloud services. Microsoft’s investment in…
