Microsoft reported a market value of $4 trillion, driven by spectacular financial results that confirm its strategy focused on artificial intelligence (AI) is paying off. The company reported revenue of $76.441 billion in the fiscal fourth quarter that ended on June 30, 2025, representing an 18% increase compared to the same period last year. In terms of net income, the company earned $27.233 billion, a 24% year-over-year increase.
Operating income reached $34.323 billion, up 23%, while diluted earnings per share (EPS) rose to $3.65, a 24% increase from the previous year.
ALSO READ: Meta surprises the market with earnings up 22% thanks to advertising
Microsoft Cloud, the highlight of the quarter
The Microsoft Cloud unit was the standout of the quarter. It generated $46.7 billion in revenue, a 27% increase compared to the same quarter of the previous fiscal year. Satya Nadella, the company’s CEO, emphasized: “Cloud and AI are the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era.”
Azure, Microsoft’s cloud computing service, posted 39% growth, with annual revenue surpassing \$75 billion.
How did Microsoft’s products and services contribute to growth?
Results across Microsoft’s key divisions were equally strong:
- Productivity and Business Processes: $33.112 billion in revenue, +16%. Microsoft 365 stood out, with its commercial version growing 18%.
- Intelligent Cloud: $29.878 billion in revenue, +26%.
- More Personal Computing: $13.451 billion in revenue, +9%, driven by a 13% increase in Xbox content and services, and 21% growth in search and news advertising.
LinkedIn also contributed with a 9% revenue increase, while Dynamics 365 grew by 23%.
What role does artificial intelligence play in Microsoft’s earnings?
AI has become the cornerstone of Microsoft’s growth strategy. Copilot tools, integrated into products like Microsoft 365 and Azure, now exceed 100 million monthly active users. This innovation is positioning Microsoft as an undisputed leader in the new paradigm of AI-powered enterprise services.
Additionally, Microsoft announced a record $30 billion capital investment for the first quarter of the new fiscal year, aimed at keeping pace with the surging demand for cloud-based AI services.
How does Microsoft compare with other tech giants?
Alongside Nvidia, Amazon, Meta, and Alphabet, Microsoft is part of the elite group of companies now representing one-quarter of the S&P 500 index. Together, these firms added over half a trillion dollars in market value following their strong quarterly reports.
Nvidia leads the group with a market capitalization reaching $4.4 trillion. Microsoft, by hitting \$4 trillion, becomes the second company to cross that threshold—just weeks after Nvidia first did so on July 9.
What were Microsoft’s results for the full fiscal year 2025?
For the full fiscal year ending June 30, 2025, Microsoft reported:
- Total revenue: $281.724 billion, a 15% increase.
- Operating income: $128.528 billion, +17%.
- Net income: $101.832 billion, +16%.
- Diluted earnings per share: $13.64, up 16%.
Amy Hood, Microsoft’s Chief Financial Officer, noted: “We closed the fiscal year with a strong quarter, highlighted by the accelerated growth of Microsoft Cloud.”
What market conditions favored these gains?
Beyond technological advances, the macroeconomic environment has also been favorable. Progress in trade negotiations between the United States and global partners has lifted stock markets, driving the S&P 500 and Nasdaq to record highs.
This external momentum, combined with a solid internal strategy centered on AI and the cloud, has positioned Microsoft as one of the most profitable and resilient stocks on the market.
