Microsoft Reports $246.67 Billion Net Income in First Quarter of 2025 Fiscal Year, Up 11% Year-Over-Year

October 31, 2024 – Microsoft has released its financial results for the first quarter of the 2025 fiscal year, revealing a significant growth in revenue and net income. According to the report, the company’s revenue for the quarter stood at 655.85billion,markinga16565.17 billion reported in the same period last year. This growth was consistent when excluding the impact of currency movements.

Net income for the quarter amounted to 246.67billion,up11222.91 billion earned in the corresponding quarter of the previous year. When adjusted for currency fluctuations, the growth rate was 10%. Diluted earnings per share also rose by 10% to 3.30,from2.99 in the year-ago quarter.

In terms of business segments, the Productivity and Business Processes division reported revenue of 283.17billion,a12252.26 billion generated in the prior year’s quarter. Operating profit for this segment rose to 165.16billionfrom142.97 billion.

The Intelligent Cloud segment also showed strong growth, with revenue increasing by 17% to 240.92billionfrom200.13 billion in the same quarter last year. Operating profit for this division grew to 105.03billionfrom89.08 billion.

Meanwhile, the More Personal Computing business recorded a 17% increase in revenue to 131.76billion,upfrom112.78 billion in the corresponding quarter of the last fiscal year. However, operating profit for this segment declined to 35.33billionfrom36.90 billion.

On the expenditure side, Microsoft’s research and development costs rose to 75.44billionfrom66.59 billion in the year-ago quarter. Sales and marketing expenses also increased to 57.17billionfrom51.87 billion, while general and administrative costs climbed to 16.73billionfrom14.74 billion.

It’s worth noting that while the Product and Service businesses reported a mixed performance, with Product revenue declining slightly to 152.72billionfrom155.35 billion, the Service and other businesses more than made up for it, growing significantly to 503.13billionfrom409.82 billion. Overall, Microsoft’s strong financial results for the first quarter of the 2025 fiscal year indicate robust performance across its key business segments.

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