Microsoft has posted a net profit of more than 100 billion dollars in a financial year for the first time. This is according to the figures published on Wednesday evening for the fourth quarter and the full financial year 2025. The software company’s financial year 2025 ended on June 30. As it turns out, the fourth quarter went even better than the previous three quarters.
In the three months to the end of June, Microsoft generated revenue of 76.4 billion US dollars, an increase of 18% compared to the same quarter of the previous year. Of the three Group divisions Productivity and Business Processes (in particular Office software, Dynamics 365, Linkedin), Intelligent Cloud (Azure, SQL Server, Github, various AI services) and More Personal Computing (Windows, advertising, hardware, computer games), the Cloud division grew the most: it generated revenue of 29.9 billion dollars, an increase of 16 percent.
This brings it close to the currently still largest division, Productivity and Business Processes, which achieved quarterly sales of 33.1 billion dollars, up 16 percent. Private customer sales with Microsoft 365, including cloud services, are driving business in particular (+21%). As at the reporting date, the company had 89 million private customer subscriptions for MS 365 (+8%). Comparable sales with business customers increased by 16%. Dynamics 365 increased by 18%, with cloudification also having an impact here: Revenue from on-premise licenses is shrinking, but it is raining all the more money from the cloud. Linkedin reports seven percent more sessions and nine percent higher revenue.
At 13.5 billion (+9%), the More PC division is well behind the other two parts of the Group. Among other things, the fact that sales of Xbox hardware fell by 22% had an impact. Nevertheless, Xbox content and services brought in 13% more money. Windows licenses and hardware increased by three percent and computer games by ten percent.
What remains
In the fourth quarter, operating profit rose by 23 percent to 34.3 billion dollars – and thus more strongly than turnover (as mentioned above +18%). Operating cash flow rose by around 15 percent to 42.6 billion dollars. The lower increase compared to operating profit is partly because Microsoft had five billion dollars less outstanding invoices to pay than a year ago. This has no effect on profit, but does have an impact on cash flow.
The item other profits is not only negative, but at minus 1.7 billion dollars also significantly more negative than a year ago (+153%). This line in the financial data includes, among other things, the share of OpenAI’s losses that is allocated to Microsoft according to its shareholding. This results in a pre-tax profit of 32.6 billion dollars (+20%), from which a net profit of 27.2 billion dollars (+24%) remains after deduction of around 16.5% tax provisions.
Full financial year 2025
This means that Microsoft grew more in relative terms in the fourth quarter than in the entire financial year 2025. “We ended the financial year with a strong fourth quarter,” said Microsoft’s CFO Amy Hood.
In the twelve months to the end of June, the data company generated revenue of 282 billion US dollars (+15%), of which 129 billion dollars was operating profit (+17%). The operating cash flow grew by 15 percent to 136 billion dollars.
Thanks to OpenAI, other profits are around five billion dollars negative – almost three times Microsoft’s financial year 2025. Of the 124 billion dollars pre-tax profit (+15%), 102 billion dollars net profit remains after deduction of around 18% tax provision, exactly 101,832 million dollars. This is the first time that this profit has reached twelve figures.
Following the announcement of the financial figures, Microsoft shares gained around nine percent in after-hours trading. If this is confirmed in regular trading, Microsoft’s stock market valuation will exceed four trillion dollars for the first time. So far, only Nvidia has reached this level.
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