Microsoft simply wrapped up its third quarter of fiscal 2025 with one other stable flex, beating expectations but once more. Income hit $70.1 billion, up 13% from final yr (or 15% for those who issue out forex swings), whereas earnings per share climbed 18% to $3.46.

Azure and the broader cloud companies arm clocked in with the identical 33% development price as Q1 (35% when adjusted for forex), pulling forward of Q2’s 31% and reinforcing a gradual upward development. CEO Satya Nadella pointed to AI because the game-changer right here. Companies are leaning tougher on Microsoft’s AI stack to work smarter and trim prices, and it’s displaying within the numbers.

The Productiveness and Enterprise Processes unit, house to Microsoft 365 and Dynamics 365, pulled in $29.9 billion, a ten% raise from final yr (13% with forex changes). Microsoft 365 Industrial posted an 11% enhance, whereas Dynamics 365 outpaced it with 16%. LinkedIn continues to be rising, however at a slower 7%.

As for the Extra Private Computing division, it introduced in $13.4 billion, up 6%. Home windows OEM crept up 3%, Xbox content material and companies added 8%, and search and information advertisements have been the shock standout, leaping 21% when you strip out site visitors prices. These positive aspects helped maintain the section within the inexperienced, with Home windows and Xbox pulling greater than their weight.

Financially, Microsoft transformed its top-line energy into $37 billion of working money circulate, even because it invested $16.7 billion in property and tools to increase its datacenter footprint for AI. CFO Amy Hood highlighted that Microsoft Cloud alone generated $42.4 billion this quarter, up 20% (22% in fixed forex), fueling each analysis and improvement and shareholder returns. The corporate returned $9.7 billion to shareholders by dividends and share buybacks.

Wanting ahead, whereas this quarter’s outcomes look stable, Redmond made certain to say that the street forward has its potential bumps. It identified that precise outcomes may differ materially from expectations due to issues like “intense competitors in all of our markets,” the straightforward incontrovertible fact that “important investments in services could not obtain anticipated returns,” and the ever-present risk of “cyberattacks and safety vulnerabilities.”

The corporate additionally famous that adjustments in “authorities enforcement underneath competitors legal guidelines” or “legal guidelines and rules regarding the dealing with of non-public knowledge” may influence its enterprise.

Extra particulars on Microsoft’s third-quarter FY2025 outcomes are accessible on the corporate’s official web site.