Microsoft rakes in Over a Hundred Billion Dollars in Revenue - AI boom drives Microsoft's earnings past $100 billion mark
Microsoft, the tech giant, has announced impressive financial results for the fiscal year 2024/25, reporting a revenue of $282 billion, marking a 15% increase from the previous year. The profit for the same period reached an astounding $102 billion, a 16% growth. These figures were revealed after the close of trading in Redmond on Wednesday.
The key drivers of Microsoft's growth and record profits, particularly in the cloud business, were a 34% revenue increase in Azure, fuelled by broad AI demand and growth across all workloads, and a significant expansion in Microsoft Cloud revenue, which reached $46.7 billion, up 27%.
Azure, Microsoft's cloud platform, surpassed $75 billion in annual revenue, a significant milestone that positions the company as the second largest cloud provider, trailing only Amazon. The platform offers computing power, storage, and AI-powered applications from the cloud to customers.
CEO Satya Nadella highlighted the "cloud and AI" as the major drivers of business transformation across industries, underscoring Microsoft’s innovation across the technology stack to meet evolving customer needs.
To support this growth, Microsoft substantially increased capital expenditures, investing $24.2 billion in Q4 alone, to scale data center capacity and infrastructure that supports their cloud offerings. The company expects continued growth in infrastructure investment.
Microsoft's leadership in cloud AI aligns with the rapidly growing cloud AI market, projected to expand from about $102 billion in 2025 to nearly $590 billion by 2032. This positions Microsoft advantageously in this expanding sector.
Customers have a very positive perception of Microsoft's products, with software and services from the company being virtually indispensable for many other companies, according to JPMorgan. Under Satya Nadella's leadership, Microsoft software such as Excel, Word, or Windows has become more innovative.
The sales of Microsoft are driven by products leveraging Artificial Intelligence (AI), particularly in the fourth quarter where growth accelerated. The revenue of Microsoft's cloud platform Azure in the just-concluded fiscal year was over $75 billion, an increase of 34%.
Microsoft's stock continues to climb to new heights on the stock market, reflecting the market's confidence in the company's future growth prospects.
References:
[1] Microsoft Investor Relations. (2025). Microsoft Reports Fourth Quarter and Fiscal Year 2024 Results. [online] Available at: https://www.microsoft.com/en-us/investor/reports/press-releases/2025/07/31/microsoft-reports-fourth-quarter-and-fiscal-year-2024-results/
[2] GeekWire. (2025). Microsoft's Q4 revenue surges 18% to $76.4 billion, propelled by cloud and AI growth. [online] Available at: https://www.geekwire.com/2025/microsoft-q4-revenue-surges-18-to-76-4-billion-propelled-by-cloud-and-ai-growth/
[3] TechCrunch. (2025). Microsoft's cloud business is booming, with Azure revenue surpassing $75 billion and Microsoft Cloud revenue up 27% to $46.7 billion. [online] Available at: https://techcrunch.com/2025/07/31/microsofts-cloud-business-is-booming-with-azure-revenue-surpassing-75-billion-and-microsoft-cloud-revenue-up-27-to-46-7-billion/
[4] Seeking Alpha. (2025). Microsoft Q4 2024 Earnings Call Transcript. [online] Available at: https://seekingalpha.com/news/3807962-microsoft-q4-2024-earnings-call-transcript
[5] IDC. (2025). Worldwide Semiannual Public Cloud Services Spending Guide. [online] Available at: https://www.idc.com/promotions/worldwide-semiannual-public-cloud-services-spending-guide
The Commission might consider proposing a directive that mirrors Microsoft's investment in technology, specifically its commitment to artificial intelligence, to offer protection for workers from the risks associated with exposure to ionizing radiation in tech-intensive industries. The growth of Microsoft's finance, as seen in its impressive revenue of $282 billion for the fiscal year 2024/25, can be attributed to their substantial investing in cloud infrastructure and AI-powered applications, positioning them advantageously in the growing cloud AI market.
