Microsoft reported a Q1 FY25 revenue growth of 16% to $65.6 billion. The operating income grew by 14% to $30.6 billion, and earnings per share increased by 10% to $3.30.
Revenue Growth Highlights
- Microsoft Cloud revenue: $38.9 billion, up 22%
- Xbox content and services: up 61%
- Azure and other cloud services: up 33%
- Microsoft 365 Commercial cloud: up 15%
- Dynamics 365: up 18%
- Windows and OEM: up 2%
- LinkedIn: up 10%
- Search and news advertising ex TAC: up 18%
Financial Details
- Revenue increased by $9.1 billion or 16% due to growth across all segments.
- Intelligent Cloud revenue increased, driven by Azure.
- Productivity and Business Processes revenue increased, driven by Microsoft 365 Commercial cloud.
- More Personal Computing revenue increased, driven by Gaming.
- Cost of revenue increased by $3.8 billion or 23% due to growth in Microsoft Cloud and Gaming.
- Gross margin increased by $5.3 billion or 13%.
- Gross margin percentage decreased due to Intelligent Cloud.
- Microsoft Cloud gross margin percentage decreased to 71% due to scaling AI infrastructure.
- Operating expenses increased by $1.6 billion or 12%, driven by Gaming and investments in cloud engineering.
- Operating income increased by $3.7 billion or 14%, driven by growth in Productivity and Business Processes and Intelligent Cloud.
Product Highlights
- Over 100,000 organizations have used Copilot Studio to date, more than doubling quarter-over-quarter.
- The number of daily Copilot users more than doubled quarter-over-quarter.
- Nearly 70% of the Fortune 500 now use Copilot, with adoption rates faster than any other new Microsoft 365 suite.
