Microsoft posted revenue of $69.6 billion for the quarter ending December 31, 2024, marking a 12% increase year-over-year. Operating income reached $31.7 billion, up 17%, while net income rose 10% to $24.1 billion. The company credited its cloud and AI businesses for the strong performance, with Microsoft Cloud generating $40.9 billion in revenue, a 21% increase from the prior year. Azure and other cloud services drove a 31% revenue boost in the Intelligent Cloud segment.
Revenue for Productivity and Business Processes rose 14% to $29.4 billion, fueled by Microsoft 365 and Dynamics 365 growth. Intelligent Cloud revenue climbed 19% to $25.5 billion, with strong demand for AI-driven solutions. More Personal Computing revenue remained steady at $14.7 billion, supported by gains in Windows OEM and Xbox content. Microsoft returned $9.7 billion to shareholders through dividends and stock buybacks.
• Total revenue: $69.6 billion (+12% YoY)
• Operating income: $31.7 billion (+17%)
• Net income: $24.1 billion (+10%)
• Diluted EPS: $3.23 (+10%)
• Microsoft Cloud revenue: $40.9 billion (+21%)
Productivity and Business Processes ($29.4 billion, +14%)
• Microsoft 365 Commercial revenue grew 15%, driven by cloud adoption
• Microsoft 365 Consumer revenue rose 8%
• LinkedIn revenue increased 9%
• Dynamics 365 revenue expanded 19%
Intelligent Cloud ($25.5 billion, +19%)
• Server and cloud services revenue up 21%
• Azure and other cloud services grew 31%
More Personal Computing ($14.7 billion, flat YoY)
• Windows OEM and Devices revenue increased 4%
• Xbox content and services revenue up 2%
• Search and news advertising revenue (excluding TAC) climbed 21%
“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,†said Satya Nadella, chairman and CEO of Microsoft. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.â€
