Microsoft indicated that it had made a net profit of $24. 1 billion on a revenue stream of $69. 6 billion in the quarter ending Dec. 31, the time in its 2025 quarter. These figures constitute gains of 10% and 12% in annual slippage (YOY), respectively.
“We are innovating in our technological battery and helping consumers unlock all the [return of investment] of AI to capture the next great opportunities,” said Satya Nadella, CEO of Microsoft. “Already, our corporate AI has exceeded an annual execution rate of $ thirteen billion, a 175% increase in the annual shift. ” (This represents only $ 3. 25 billion consisting of the quarter). In comparison, the source of income of Microsoft Cloud $ 40. 9 billion in the quarter, a gain of 21% in the annual slip.
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Productivity and business processes once became Microsoft’s largest advertising unit, with $29. 4 billion in revenue stream, up 14% on annual change. Microsoft 365 Commercial Products and Cloud Services revenue greater than 15% in annual change, due in component through the addition of revenue source from Windows advertising activity. Microsoft 365 Client Products and Cloud revenue is up 8% in annual slippage, and there are now 86. 3 million subscribers to Microsoft 365 customers, up 10% in year-over-year change.
Intelligent Cloud delivered $25. 5 billion in increased profits, up 19% year-over-year. Azure profits grew 31% year-over-year, while server and cloud profits grew 21% year-over-year.
A more non -public calculation has been raising its back for years, however, this quarter was especially bad, with only $ 14. 7 billion, without changes from the quarter of the previous year. There were few smart news. Windows earnings from PC manufacturers increased 4% and Xbox content and profits increased by 2%. But the games of the games fell 7% year after year and compared to Xbox, the profits fell a brutal 29%.
I’ll have a longer write-up tomorrow, but capital expenditures in the quarter were $22.3 billion, and it’s safe to assume that’s all AI infrastructure costs. So that figure keeps going up.
More soon.
Paul Thurrott is an award -winning generation and blogger journalist with 30 years of the industry delighting and the 30 book writer. Windows practices, and the first ring daily with Brad Sams. He was in the past a senior generation analyst at Windows It Pro and writer of the For Windows Supersite from 1999 to 2014 and the dome of Thurrott. com Main of the BWW Media Group From 2015 to 2023. You can succeed in Paul through email, Twitter or Mastodon.
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