Microsoft reported $70.1 billion in revenue, up 13%, beating Wall Street expectations of $68.42 billion $68.42 billion. The software maker also announced a 25.8 billion in net income for the January to March quarter. The firm said gaming revenue was up while Xbox hardware revenue continued to dwindle.
Microsoft has announced its Q3 earnings, making $70.1 billion in revenue. The tech firm reported $25.8 billion in net income for Q3, an increase of 18%. It reported an operating income of $32.0 billion, a 16% increase. Diluted earnings for every share was at $3.46 and increased 18%, as reported by Microsoft.
The tech giant revealed Xbox hardware sales continued to underperform while gaming services performed well.
Microsoft reports a 13% increase in revenue
1/ It’s been a busy few weeks – between today’s earnings and some of our recent announcements. Here are a few things I wanted to highlight:
— Satya Nadella (@satyanadella) April 30, 2025
Microsoft Corp announced its January-March quarter results on April 30, 2025. The firm revealed its revenue was $70.1 billion, a 13% increase compared to the equivalent period of the prior fiscal year. Its operating income was $32.0 billion, a 16% increase.
According to the software maker, net income increased by 18% to hit $25.8 billion. Diluted earnings for one share was $3.46, representing an 18% increase compared to the same period in the prior fiscal year.
Amy Hood, Microsoft’s Chief Financial Officer and Executive Vice President, said the firm achieved a strong quarter performance with Microsoft Cloud revenue of $42.4 billion, representing a 20% increase year-over-year. Hood noted the increase in cloud services revenue was driven by the increased demand for the firm’s differentiated offerings.
According to the software firm, Productivity and Business Processes revenues increased by 10 to $29.9 billion. The firm’s revenue for 365 commercial products and cloud offerings skyrocketed 11%. The results for the Consumer Products and Cloud offerings showed a 10% increase, while LinkedIn achieved a 7% increase in revenue. Â
Microsoft announced a $13.4 billion revenue in its More Personal Computing realm, representing a 6% increase year-over-year for the same period. The tech firm disclosed that Windows OEM and Devices revenue increased by 3%.
Microsoft’s Xbox content and its services achieved a revenue growth of 8%. Search and News Advertising earnings increased by 21%, excluding traffic acquisition costs. The tech giant returned $49.7 billion to its investors through share repurchases and dividends in the Q3 of fiscal year 2025.Â
Microsoft says Xbox hardware sales dwindled
Microsoft announced a continued decline in its Xbox hardware sales over Q3. The firm said the Xbox hardware sales, including S Consoles and Xbox Series X, continued to fall by 6% year-on-year.
The decline in Xbox hardware revenue came as rival Nintendo is expected to launch its highly anticipated Switch 2 device in two months. Last year, Xbox promised to release a few of its exclusive titles, usually reserved for PCs and Xbox consoles, on PlayStation and Nintendo devices.Â
Microsoft CEO Satya Nadella said they ended the Q3 as the top publisher on the PlayStation Store and Xbox by pre-orders and pre-installs. The firm’s PC Game Pass earnings skyrocketed by 45% year-on-year, while cloud gaming achieved a new milestone by exceeding 150 million hours played this quarter.
Microsoft recently launched its Xbox cloud gaming app on the latest LG smart TV sets. The firm said the new app allowed users to stream games directly from the company’s servers. The company said users needed a compatible LG TV, an Xbox Game Pass Ultimate subscription, and a Bluetooth controller.
Amy Hood promised the tech firm would keep innovating across its various products and services to deliver for its customers.
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