Microsoft ended its fiscal year 2025 with strong fourth-quarter results, underscoring the company’s continued dominance in cloud infrastructure and accelerated focus on AI-driven services. For the quarter ending June 30, Microsoft reported $76.4 billion in revenue, an 18% increase year-over-year.
The standout driver of this performance was Azure, which surpassed $75 billion in annual revenue – up 34% from the prior year – cementing its role as a central engine in Microsoft’s growth strategy.
CEO Satya Nadella emphasized the centrality of AI and cloud to the company’s long-term direction. “Cloud and AI is the driving force of business transformation across every industry and sector,” he said. “We’re innovating across the tech stack to help customers adapt and grow in this new era.” That innovation is being channeled primarily through Azure, where Microsoft is integrating AI capabilities across infrastructure, platform, and software layers.
The Intelligent Cloud segment, which houses Azure, generated $29.9 billion in Q4 revenue, growing 26% year-over-year. Azure and other cloud services were up 39%, reflecting broad enterprise adoption of AI-enabled infrastructure. Microsoft’s investment in AI supercomputing infrastructure – combined with offerings like Azure OpenAI Service – has positioned it as a go-to platform for enterprises developing and deploying large language models, real-time inference, and scalable AI workloads.
Microsoft Cloud overall, which includes Azure, Microsoft 365, Dynamics, and other services, reached $46.7 billion in quarterly revenue, up 27%. The company’s AI momentum was not limited to infrastructure; enterprise applications are increasingly benefiting from embedded AI features. For example, Microsoft 365’s Copilot features – built on Azure OpenAI – have begun rolling out across commercial and consumer platforms.
Global AI Data Center Footprint
In Productivity and Business Processes, Microsoft 365 Commercial revenue grew 18%, fueled by demand for AI-enhanced productivity tools. Dynamics 365, Microsoft’s cloud-native business applications platform, grew 23% in the quarter, also boosted by AI-driven automation and analytics capabilities.
These gains come as Microsoft continues expanding its global AI data center footprint, reinforcing its ability to support both foundational model training and inference at scale. The company’s AI stack, tightly integrated from silicon to software, is increasingly differentiating Azure from competitors in the hyperscaler market.
For the full fiscal year, Microsoft reported $281.7 billion in revenue, up 15% from 2024. Net income rose 16% to $101.8 billion. As AI continues to reshape enterprise IT, Microsoft’s strategy of deeply embedding AI into its infrastructure and applications puts it at the forefront of the next phase of digital transformation.
