Microsoft sees 18% increase in advertising revenue

For the quarter ended March 31, 2025, the tech giant posted revenue of $70.1 billion, up 13% year-over-year

by e4m Staff
Published: May 1, 2025 2:20 PM | 2 min read

Microsoft has kicked off fiscal 2025 with a powerful earnings report, driven by surging demand for its cloud and AI offerings. For the quarter ended March 31, 2025, the tech giant posted revenue of $70.1 billion, up 13% year-over-year, and net income of $25.8 billion, marking an 18% increase. Diluted earnings per share came in at $3.46, beating analyst forecasts of $3.23 and reflecting an 18% jump from last year.

The star performer was Microsoft Cloud, which generated $42.4 billion in revenue, up 20% from the prior year. CEO Satya Nadella emphasized the company’s leadership in AI and cloud, stating, “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.”

Gaming also delivered a standout quarter, with Xbox content and services revenue jumping 61%, fueled by the successful integration of Activision Blizzard. Meanwhile, search and news advertising revenue increased 18%, supported by growth in Bing and Edge usage.

Microsoft returned $9.7 billion to shareholders through dividends and share repurchases, underscoring its strong cash flow and commitment to shareholder value.

Following the earnings announcement, Microsoft’s stock surged nearly 8% in after-hours trading, reflecting investor confidence in the company’s AI-driven strategy and robust financial health.

With a bullish outlook and continued innovation across cloud, AI, and gaming, Microsoft’s Q1 2025 results highlight its ability to deliver consistent growth and adapt to the evolving technology landscape.