# Microsoft Corp (MSFT) Q4 2025 Financial Results Summary
**Release Date: July 30, 2025**
Microsoft Corp. announced its financial results for the quarter ended June 30, 2025. Below is a summary of the key financial metrics and operational highlights for the fourth quarter and the fiscal year 2025 compared to the same periods last year.
## Financial Highlights for Q4 2025
– **Revenue**:
– **$76.4 billion**, an increase of **18%** (up **17%** in constant currency).
– **Operating Income**:
– **$34.3 billion**, an increase of **23%** (up **22%** in constant currency).
– **Net Income**:
– **$27.2 billion**, an increase of **24%** (up **22%** in constant currency).
– **Diluted Earnings Per Share**:
– **$3.65**, an increase of **24%** (up **22%** in constant currency).
### Business Unit Performance
– **Productivity and Business Processes**:
– **Revenue**: **$33.1 billion**, an increase of **16%** (up **14%** in constant currency).
– Microsoft 365 Commercial products and cloud services revenue increased **16%** (up **15%** in constant currency).
– Microsoft 365 Consumer products and cloud services revenue increased **21%**, driven by a **20%** growth in Microsoft 365 Consumer cloud revenue.
– LinkedIn revenue increased **9%** (up **8%** in constant currency).
– Dynamics products and cloud services revenue increased **18%** (up **17%** in constant currency), with Dynamics 365 revenue growing **23%** (up **21%** in constant currency).
– **Intelligent Cloud**:
– **Revenue**: **$29.9 billion**, an increase of **26%** (up **25%** in constant currency).
– Server products and cloud services revenue increased by **27%**, driven by Azure and other cloud services revenue which grew by **39%**.
– **More Personal Computing**:
– **Revenue**: **$13.5 billion**, an increase of **9%**.
– Windows OEM and Devices revenue increased by **3%**.
– Xbox content and services revenue increased **13%** (up **12%** in constant currency).
– Search and news advertising revenue excluding traffic acquisition costs increased **21%** (up **20%** in constant currency).
## Shareholder Returns
– Microsoft returned **$9.4 billion** to shareholders through dividends and share repurchases during the fourth quarter.
## Fiscal Year 2025 Summary
– **Revenue**:
– **$281.7 billion**, an increase of **15%**.
– **Operating Income**:
– **$128.5 billion**, an increase of **17%** (up **18%** in constant currency).
– **Net Income**:
– **$101.8 billion**, an increase of **16%** (up **15%** in constant currency).
– **Diluted Earnings Per Share**:
– **$13.64**, an increase of **16%**.
## Outlook and Future Guidance
– Microsoft will provide forward-looking guidance during its earnings conference call and webcast.
## Cash Flow and Balance Sheet Highlights
– The company’s cash and cash equivalents at the end of the quarter stood at **$30.2 billion**, up from **$18.3 billion** a year ago.
– Total assets increased to **$619 billion**, compared to **$512 billion** a year earlier.
– Shareholders’ equity rose to **$343.5 billion**, from **$268.5 billion** year-over-year.
## Summary of Financial Performance Metrics
**Q4 2025 Compared to Q4 2024**:
– Revenue increased **18%**
– Operating Income increased **23%**
– Net Income increased **24%**
– Diluted EPS increased **24%**
**Fiscal Year 2025 Compared to Fiscal Year 2024**:
– Revenue increased **15%**
– Operating Income increased **17%**
– Net Income increased **16%**
– Diluted EPS increased **16%**
Microsoft’s continued focus on cloud and artificial intelligence services has propelled significant growth reflected across all major business segments, showcasing its strong financial performance and robust shareholder return strategy.
### MICROSFT CORPORATION INCOME STATEMENTS (In millions, except per share amounts) (Unaudited)
| Three Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| June 30, 2025 | 2024 | June 30, 2025 | 2024 | |
| Revenue: | ||||
| Product | $17,136 | $13,217 | $63,946 | $64,773 |
| Service and other | 59,305 | 51,510 | 217,778 | 180,349 |
| Total revenue | 76,441 | 64,727 | 281,724 | 245,122 |
| Cost of revenue: | ||||
| Product | 3,314 | 1,438 | 13,501 | 15,272 |
| Service and other | 20,700 | 18,246 | 74,330 | 58,842 |
| Total cost of revenue | 24,014 | 19,684 | 87,831 | 74,114 |
| Gross margin | 52,427 | 45,043 | 193,893 | 171,008 |
| Research and development | 8,829 | 8,056 | 32,488 | 29,510 |
| Sales and marketing | 7,285 | 6,816 | 25,654 | 24,456 |
| General and administrative | 1,990 | 2,246 | 7,223 | 7,609 |
| Operating income | 34,323 | 27,925 | 128,528 | 109,433 |
| Other expense, net | -1,707 | -675 | -4,901 | -1,646 |
| Income before income taxes | 32,616 | 27,250 | 123,627 | 107,787 |
| Provision for income taxes | 5,383 | 5,214 | 21,795 | 19,651 |
| Net income | $27,233 | $22,036 | $101,832 | $88,136 |
| Earnings per share: | ||||
| Basic | $3.66 | $2.96 | $13.70 | $11.86 |
| Diluted | $3.65 | $2.95 | $13.64 | $11.80 |
| Weighted average shares | ||||
| outstanding: | ||||
| Basic | 7,432 | 7,433 | 7,433 | 7,431 |
| Diluted | 7,461 | 7,472 | 7,465 | 7,469 |
### BALANCE SHEETS (In millions) (Unaudited)
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $30,242 | $18,315 |
| Short-term investments | 64,323 | 57,228 |
| Total cash, cash equivalents, and | 94,565 | 75,543 |
| short-term investments | ||
| Accounts receivable, net of allowance | 69,905 | 56,924 |
| for doubtful accounts of $944 and $830 | ||
| Inventories | 938 | 1,246 |
| Other current assets | 25,723 | 26,021 |
| Total current assets | 191,131 | 159,734 |
| Property and equipment, net of | ||
| accumulated depreciation of $93,653 and | 204,966 | 135,591 |
| $76,421 | ||
| Operating lease right-of-use assets | 24,823 | 18,961 |
| Equity and other investments | 15,405 | 14,600 |
| Goodwill | 119,509 | 119,220 |
| Intangible assets, net | 22,604 | 27,597 |
| Other long-term assets | 40,565 | 36,460 |
| Total assets | $619,003 | $512,163 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $27,724 | $21,996 |
| Short-term debt | 0 | 6,693 |
| Current portion of long-term debt | 2,999 | 2,249 |
| Accrued compensation | 13,709 | 12,564 |
| Short-term income taxes | 7,211 | 5,017 |
| Short-term unearned revenue | 64,555 | 57,582 |
| Other current liabilities | 25,020 | 19,185 |
| Total current liabilities | 141,218 | 125,286 |
| Long-term debt | 40,152 | 42,688 |
| Long-term income taxes | 25,986 | 27,931 |
| Long-term unearned revenue | 2,710 | 2,602 |
| Deferred income taxes | 2,835 | 2,618 |
| Operating lease liabilities | 17,437 | 15,497 |
| Other long-term liabilities | 45,186 | 27,064 |
| Total liabilities | 275,524 | 243,686 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Common stock and paid-in capital – | ||
| shares authorized 24,000; outstanding | ||
| 7,434 and 7,434 | 109,095 | 100,923 |
| Retained earnings | 237,731 | 173,144 |
| Accumulated other comprehensive loss | -3,347 | -5,590 |
| Total stockholders’ equity | 343,479 | 268,477 |
| Total liabilities and stockholders’ | $619,003 | $512,163 |
| equity |
