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Microsoft reported strong financial results for Q2 FY25, with revenue reaching $69.6 billion, up 12% year-over-year.
The firm’s latest financials show that operating income grew 17% to $31.7bn, while net income rose 10% to $24.1bn. The Windows company also reported $31.7bn in operating income, a 17% increase.
While Xbox hardware sales declined 29% YoY, Xbox content and services revenue rose 2%, boosted by Xbox Game Pass growth largely driven by Call of Duty: Black Ops 6 and highlights the vital role of subscription services for Microsoft’s gaming efforts.
“Game Pass set a new quarterly record for revenue and grew its PC subscriber base by over 30%, as we focus on driving fully-paid subscribers across endpoints,” said Microsoft chairman and CEO Satya Nadella.
AI advances
Microsoft continues to double down on AI, with its cloud revenue surging 21% YoY, driven by Azure commitments from OpenAI as it aims to position itself as a leader in the AI space.
“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,” said Microsoft chairman and CEO Satya Nadella.
“Our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”
Elsewhere, Microsoft is reportedly in talks to acquire TikTok as its future in the U.S. remains uncertain. President Trump suggested a bidding war, claiming multiple companies are interested.
