Microsoft has posted spectacular first-quarter outcomes for the fiscal 12 months 2025, with whole income reaching $65.6 billion—a 16% improve in comparison with the identical interval final 12 months. The corporate’s web revenue rose by 11% to $24.7 billion.
Microsoft Cloud continued to drive progress, reporting revenues of $38.9 billion, a 22% rise year-on-year. Amy Hood, Microsoft’s chief monetary officer, attributed the expansion to “sturdy execution” from Microsoft’s gross sales groups and companions.
Chief government Satya Nadella highlighted the affect of synthetic intelligence (AI) in reshaping workflows throughout sectors, describing AI as pivotal to Microsoft’s strategic route. “AI-driven transformation is altering work, work artefacts, and workflow throughout each position, operate, and enterprise course of,” Nadella famous. He added that the corporate’s AI platforms and instruments are attracting new clients, offering progress and operational benefits.
Microsoft has invested closely in AI, notably by its partnership with start-up OpenAI. AI has develop into an anchor for Microsoft’s cloud computing service, Azure, whose progress held regular at round 34% this quarter. A good portion of this progress—over one-third—has been pushed by AI, with Microsoft benefiting from clients utilising OpenAI’s techniques. Azure’s progress could reasonable within the subsequent quarter however is predicted to speed up in 2025 as new AI-driven knowledge centre capability comes on-line.
Microsoft doesn’t disclose particular person gross sales for its AI assistants—priced at $30 monthly for enterprise clients. Nonetheless, its Microsoft 365 industrial cloud choices, together with Excel, Groups, and Phrase, grew by 15%.
In the meantime, the corporate’s gaming phase reported sturdy outcomes, with income reaching $5.6 billion, marking a 44% year-on-year improve. This progress follows Microsoft’s $69 billion acquisition of Activision Blizzard, which closed final October and has develop into central to Microsoft’s consumer-focused technique.
Written with the View : afaqs