Thursday, January 30th 2025

Microsoft Announces its FY25 Q2 Earnings Release

Microsoft Corp. today announced the following results for the quarter ended December 31, 2024, as compared to the corresponding period of last fiscal year:
  • Revenue was $69.6 billion and increased 12%
  • Operating income was $31.7 billion and increased 17% (up 16% in constant currency)
  • Net income was $24.1 billion and increased 10%
  • Diluted earnings per share was $3.23 and increased 10%
"We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," said Satya Nadella, chairman and chief executive officer of Microsoft. "Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year."
"This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year," said Amy Hood, executive vice president and chief financial officer of Microsoft. "We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure."

Business Highlights
Revenue in Productivity and Business Processes was $29.4 billion and increased 14% (up 13% in constant currency), with the following business highlights:
  • Microsoft 365 Commercial products and cloud services revenue increased 15% driven by Microsoft 365 Commercial cloud revenue growth of 16% (up 15% in constant currency)
  • Microsoft 365 Consumer products and cloud services revenue increased 8% driven by Microsoft 365 Consumer cloud revenue growth of 8%
  • LinkedIn revenue increased 9%
  • Dynamics products and cloud services revenue increased 15% (up 14% in constant currency) driven by Dynamics 365 revenue growth of 19% (up 18% in constant currency)
Revenue in Intelligent Cloud was $25.5 billion and increased 19%, with the following business highlights:
  • Server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 31%
Revenue in More Personal Computing was $14.7 billion and was relatively unchanged, with the following business highlights:
  • Windows OEM and Devices revenue increased 4%
  • Xbox content and services revenue increased 2%
  • Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)
Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the second quarter of fiscal year 2025.
Business Outlook
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements
Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.
Source: Microsoft
Add your own comment

8 Comments on Microsoft Announces its FY25 Q2 Earnings Release

#1
kondamin
Should be enough for them to purchase an other nuclear plant
Posted on Reply
#2
MacZ
The need for always rising stock prices begets the need for always rising profits that begets the need to r*pe your customers in saturated markets.

Going from buying a standalone version of Office to having to subscribe to Office 365 for an annual fee is purely inflationnary for example.

A lot of individuals don't even need a lot of of what was possible with a standalone version of Office. It was already overkill.

Forcing AI on your customers with a mandatory price increase is another example of r*ping your customers while having an excuse.
Posted on Reply
#3
kondamin
MacZThe need for always rising stock prices begets the need for always rising profits that begets the need to r*pe your customers in saturated markets.

Going from buying a standalone version of Office to having to subscribe to Office 365 for an annual fee is purely inflationnary for example.

A lot of individuals don't even need a lot of of what was possible with a standalone version of Office. It was already overkill.

Forcing AI on your customers with a mandatory price increase is another example of r*ping your customers while having an excuse.
If you don't need all the office features you probably don't need Microsoft office and can make due with the the many many open/free solutions now available.
For corporate SaaS is great and for consumers the stuff bundled like cloud storage isn't that bad either.

Is it inflationary, I don't think so.
it doesn't make your money worth less.
if there is anything that held inflation at bay before the catastrophe that was the governments reaction to covid it's computers and in the later part phones plateauing and lasting many years in stead of just a couple.
That might look different to an enthusiast that needs the latest and greatest right away, but we aren't that many in the greater picture.
Posted on Reply
#4
MacZ
kondaminIf you don't need all the office features you probably don't need Microsoft office and can make due with the the many many open/free solutions now available.
For corporate SaaS is great and for consumers the stuff bundled like cloud storage isn't that bad either.

Is it inflationary, I don't think so.
it doesn't make your money worth less.
if there is anything that held inflation at bay before the catastrophe that was the governments reaction to covid it's computers and in the later part phones plateauing and lasting many years in stead of just a couple.
That might look different to an enthusiast that needs the latest and greatest right away, but we aren't that many in the greater picture.
I am talking about individuals. People at home. There are lot of them.

Other solutions are probably fine but are incompatible with what everyone expects (word files, excel files). They can probably read them but can't display them properly.

That is the problem with overwhelming market penetration (ie saturated markets), and the reason these people can't help but being r*ped.

What are you gonna do ? Not using Word ? Not using Windows ? Some will, the vast vast majority won't.

Or maybe you should try to create the resume for your next job on LibreOffice, export it to .docx and pray that somehow the recruiter will not open a garbled mess. That should work.

Paying more for the same thing is the definition of inflationary.
Posted on Reply
#5
kondamin
MacZI am talking about individuals. People at home. There are lot of them.

Other solutions are probably fine but are incompatible with what everyone expects (word files, excel files). They can probably read them but can't display them properly.

That is the problem with overwhelming market penetration (ie saturated markets), and the reason these people can't help but being r*ped.

What are you gonna do ? Not using Word ? Not using Windows ? Some will, the vast vast majority won't.

Or maybe you should try to create the resume for your next job on LibreOffice, export it to .docx and pray that somehow the recruiter will not open a garbled mess. That should work.

Paying more for the same thing is the definition of inflationary.
But it's not the same thing, it's a constantly updated thing that and they just upped the price for the first time in a decade.
you can also get the home/student edition with W X P for 150 or something and be """safe""" for 4~5 years

Also don't send anyone word files send pdf's
Posted on Reply
#6
MacZ
kondaminBut it's not the same thing, it's a constantly updated thing that and they just upped the price for the first time in a decade.
you can also get the home/student edition with W X P for 150 or something and be """safe""" for 4~5 years

Also don't send anyone word files send pdf's
No matter what the bells and whistles they add to justify the price, paying $100/year is still vastly more expensive than paying $130 once and be done. Edit : apparently the price is actually like $300. But the reasoning stands.

If you search 'office price' on Google, you will definitively not get any result for the standalone edition in the first page. And please don't tell me because Office 365 is the best version. Repeating : for people at home, the common people, the 2021 edition is already way overkill.

The market is saturated, and there is no technical improvement that justify the price increases that Microsoft need. So they force it.

These people don't know what LibreOffice is and won't probably touch it with a 10 feet pole. They will use what they know : that is what they use at work.

Like each year, it will be the year of Linux and the year of LibreOffice.
Posted on Reply
#7
mtosev
This should be reflected in Microsoft's stocks. I hope they go up as I own some of them.
Posted on Reply
#8
bonehead123
mtosevThis should be reflected in Microsoft's stocks. I hope they go up as I own some of them.
Lookie below:
Nomad76Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the second quarter of fiscal year 2025.
However, please note that if you did NOT receive any dividend payments, you could always blame me, since I also own a large number of M$ shares, and alot of said $9.7B was paid out to me, hahahaha :D

j/k !
Posted on Reply
Jan 30th, 2025 17:06 EST change timezone

New Forum Posts

Popular Reviews

Controversial News Posts