Microsoft reported revenue of $70.1 billion in the third quarter of fiscal 2025, up 13% from the same period last year. Net income rose 18% to $25.8 billion. The company's cloud business remains the company's primary revenue driver.
"Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers," says Microsoft CEO Satya Nadella.
Microsoft Cloud brought the company $42.4 billion in revenue, up 20% from 2024, but the financial statements do not separate the cloud business and artificial intelligence, so the details of AI's success remain unknown.
Windows OEM and Microsoft devices also saw a 3% increase on the back of Trump tariffs and the end of Windows 10's lifecycle, but the increase is still small. Surface devices have been lumped together with Windows OEM, so how much they bring in individually is also unknown.
The company's gaming business grew 5%, but the Xbox hardware business continues to see a decline, which in the third quarter is 6%. As always, revenue from gaming services and content, which includes Game Pass, is growing. Here the increase is 8% compared to 2024. In total, the hardware and gaming part, as well as revenue from search and news, brought the company $ 13.4 billion.
Meanwhile, Microsoft became the largest game publisher for Xbox and PlayStation in terms of pre-orders and installs. PC Game Pass revenue grew 45%, and cloud gaming set a new record of 150 million hours played in a single quarter.
Productivity and Business Process revenue was $29.9 billion, up 10% year-over-year. Microsoft 365 Commercial grew 11% and Consumer grew 10%. LinkedIn revenue grew 7%. Intelligent Cloud, which also includes some of the cloud business, brought in $26.8 billion, up 21% year-over-year.