Microsoft exceeds quarterly expectations thanks to strong demand for Azure
Microsoft exceeded analysts’ expectations in the fourth quarter from April-June 2025 with a revenue of $76.4 billion, an increase of 18% compared to the same period last year. Analysts had anticipated $73.81 billion.
The growth is mainly due to the increase in revenue from cloud service Azure, which grew by 39%, well above the estimated growth rate of 34.8%. For the first time, Microsoft reported a full-year revenue for Azure of more than $75 billion, further strengthening the company’s position as the second largest cloud provider (after AWS).
Additionally, Microsoft reported a net profit of $27.2 billion, more than $5 billion higher than in the same period last year.
Over the entire past fiscal year, revenue rose from $245.1 to $281.7 billion, and earnings per share increased from $11.80 to $13.64, a profit increase of 16%.
Microsoft 365 Commercial saw a revenue increase of 16%, driven by an 18% growth in cloud revenue.
Microsoft 365 Consumer achieved a revenue growth of 21%, thanks to a 20% increase in cloud income from consumers.
LinkedIn’s revenue rose by 9% due to higher advertising and recruitment spending.
Dynamics products and cloud services realised a revenue growth of 18%, with a notable 23% increase for Dynamics 365.
The More Personal Computing division achieved a revenue of $13.5 billion, an increase of 9%. Search and news advertising grew by 21%.
This week, the European Commission and Microsoft agreed on additional measures to ensure that European data is processed only on the basis of explicit and clear instructions from European data owners and governments. After previous violations, the focus was on greater transparency and control.
The strong figures are overshadowed by news of a major leak in Microsoft’s SharePoint software. Many companies and governments use this software to share files. Microsoft points out that Chinese hackers are exploiting the vulnerability to steal sensitive files.
The Dutch National Cyber Security Centre (NCSC) reports that an update developed by Microsoft limits the risks, but does not fully resolve the problems.
Earlier, the European Data Protection Supervisor (EDPS) concluded that the European Commission had violated EU privacy rules with Microsoft 365 – among other things, due to insufficient contractual guarantees regarding data transfers outside the EU.
Microsoft came under pressure when it was found that data from EU customers could potentially be accessible to the US government via the Cloud Act, as regulated in US legislation.
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