Microsoft's net worth surpasses $4 trillion for the initial time in its history.
In the final quarter of its 2025 fiscal year, Microsoft, the American multinational corporation, reported impressive financial results. The company's total revenue for Q4 reached an impressive $76.4 billion, marking a 18% year-over-year increase. This growth was driven by a robust performance across various sectors, with Microsoft's operating income rising 23% to $34.3 billion, and net income increasing 24% to $27.2 billion.
A key contributor to this growth was Microsoft Azure, the company’s cloud platform. Azure's annual revenue surpassed $75 billion, showing a significant 34% year-over-year increase. Microsoft Cloud revenue overall reached $46.7 billion for the quarter, growing 27%, contributing significantly to the company's profitability and market strength.
The strong financial performance was further underscored by a robust gross profit margin of about 69%, and Microsoft's strong financial management, which saw the company return $9.4 billion to shareholders through dividends and share repurchases in Q4 of FY25.
Regarding market capitalization trends, while exact current market cap figures are not explicitly given in the latest reports, Microsoft's consistent revenue growth, especially driven by Azure and cloud services expansion, supports a strong valuation and investor confidence.
Here's a summary of the key financial metrics for Q4 FY2025:
| Metric | Value (Fiscal Year 2025 Q4) | Growth / Notes | |--------------------------------|-------------------------------------|-----------------------------| | Total Revenue | $76.4 billion | +18% YoY | | Operating Income | $34.3 billion | +23% YoY | | Net Income | $27.2 billion | +24% YoY | | Earnings Per Share | $3.65 | +24% YoY | | Microsoft Cloud Revenue | $46.7 billion | +27% YoY | | Azure Revenue (Annual) | $75 billion | +34% YoY | | Gross Profit Margin | ~69% | Maintained strong margin | | Shareholder Returns (Q4 FY25) | $9.4 billion (dividends & buybacks) | Ongoing shareholder value return|
Azure's 34% revenue growth highlights Microsoft’s strong position in the fast-growing cloud computing market, driven by demand across all workloads and fueled by AI innovation. This positions Microsoft well for continued financial strength and market capitalization expansion.
These financial results underscore Microsoft’s ongoing leadership in cloud services and its successful transformation driven by AI and cloud innovations.
[1] Microsoft Press Release [2] Bloomberg [3] Reuters [4] CNBC
- The impressive growth in Microsoft's Azure revenue, up 34% year-over-year, demonstrates Microsoft's strong presence in the rapidly expanding cloud computing market.
- Microsoft's financial strength, as evidenced by the 27% increase in Microsoft Cloud revenue and the robust gross profit margin of 69%, places the company in a favorable position for market capitalization growth.
