Microsoft Financial Results Q3 FY25

Lots of focus from CEO, Satya Nadella on AI and agents as well as next-gen databases while CFO, Amy Hood stated that “It’s getting harder and harder to separate what an AI workload is from a non-AI workload.” That latter point is definitely something I’m seeing, both within my own use of software and also in client conversations. 

Overall numbers 

Revenue was $70.1 billion, an increase of 13%, while Net Income was up 18% to $25.8 billion. The “Microsoft Cloud” revenue was $42.4 billion – an increase of 20%. 

Let’s take a look at two of the key Business Units that Microsoft call out. 

Productivity & Business Processes 

Revenue = $29.9 billion (up 10%) 

• Microsoft 365 Commercial Cloud revenue up 12% - primarily driven by SMB and Frontline Worker growth. 

• Dynamics 365 revenue up 16% 

ARPU (Average Revenue Per User) growth was driven by E5 & M365 Copilot. 

Intelligent Cloud 

Revenue = $26.8 billion (up 21%) 

• Azure grew by 33% including 16 points from AI services 

However, Amy Hood said that the “real outperformance” was in the non-AI business. She also stated that Microsoft expect to have “some AI capacity constraints” beyond June 2025 due to demand growing “a bit faster” than they can bring datacentre capacity online. 

Earnings call highlights 

• Microsoft opened 10 datacentres in 10 countries across 4 continents in Q3 FY25 

• Microsoft’s “cost per token” has more than halved…and they processed 50 trillion (yep, with a T) tokens via Azure Foundry in March 2025 

• Cosmos DB continues to grow 

• Microsoft Fabric now has 21,000+ paying customers 

• 56 million monthly active users of Power Platform 

As we go into Q4 of FY25, Microsoft continues to be in a strong position with clearly defined focus areas and a strong idea of their future path with AI, Agents, and Analytics. 

See more here FY25 Q3 - Press Releases - Investor Relations - Microsoft