Redmond, WA · Founded 1975 · 228,000 employees
Microsoft generated $281.7B in revenue for fiscal year 2025, a +14.9% year-over-year change. Gross margin was 68.8%. Net income reached $101.8B.
Microsoft's cloud growth remains explosive, but the AI 'arms race' is beginning to show real financial strain via margin compression, $106B in future lease commitments, and billions in non-operating losses from OpenAI. Microsoft delivered another strong quarter for cloud revenue and operating cash flow, but the 10-Q exposes meaningful new strategic and accounting risks that materially affect investor calculus. Azure and Microsoft 365 drove $49.1B of Microsoft Cloud revenue (up 26%), operating income expanded, and net cash from operations surged to $45.1B — confirming the company still generates enormous free cash.
| Fiscal Year | Revenue | YoY Growth | Gross Margin | Op. Margin | Net Income | EPS |
|---|---|---|---|---|---|---|
| FY2025 | $281.7B | +14.9% | 68.8% | 45.6% | $101.8B | $13.64 |
| FY2024 | $245.1B | +15.7% | 69.8% | 44.6% | $88.1B | $11.80 |
| FY2023 | $211.9B | +6.9% | 68.9% | 41.8% | $72.4B | $9.68 |
| FY2022 | $198.3B | +18.0% | 68.4% | 42.1% | $72.7B | $9.65 |
| FY2021 | $168.1B | +17.5% | 68.9% | 41.6% | $61.3B | $8.05 |
| FY2020 | $143.0B | +13.6% | 67.8% | 37.0% | $44.3B | $5.76 |
| FY2019 | $125.8B | +14.0% | 65.9% | 34.1% | $39.2B | $5.06 |
| FY2018 | $110.4B | — | 65.2% | 31.8% | $16.6B | $2.13 |
| Fiscal Year | Operating Cash Flow | Capital Expenditures | Free Cash Flow | Investing | Financing |
|---|---|---|---|---|---|
| FY2025 | $136.2B | $-64.6B | $71.6B | $-72.6B | $-51.7B |
| FY2024 | $118.5B | $-44.5B | $74.1B | $-97.0B | $-37.8B |
| FY2023 | $87.6B | $-28.1B | $59.5B | $-22.7B | $-43.9B |
| FY2022 | $89.0B | $-23.9B | $65.1B | $-30.3B | $-58.9B |
| FY2021 | $76.7B | $-20.6B | $56.1B | $-27.6B | $-48.5B |
| FY2020 | $60.7B | $-15.4B | $45.2B | $-12.2B | $-46.0B |
| FY2019 | $52.2B | $-13.9B | $38.3B | $-15.8B | $-36.9B |
| FY2018 | $43.9B | $-11.6B | $32.3B | $-6.1B | $-33.6B |
| Fiscal Year | Total Assets | Total Liabilities | Total Equity | Cash | Total Debt |
|---|---|---|---|---|---|
| FY2025 | $619.0B | $275.5B | $343.5B | $30.2B | $43.2B |
| FY2024 | $512.2B | $243.7B | $268.5B | $18.3B | $44.9B |
| FY2023 | $412.0B | $205.8B | $206.2B | $34.7B | $47.2B |
| FY2022 | $364.8B | $198.3B | $166.5B | $13.9B | $49.8B |
| FY2021 | $333.8B | $191.8B | $142.0B | $14.2B | $58.1B |
| FY2020 | $301.3B | $183.0B | $118.3B | $13.6B | $63.3B |
| FY2019 | $286.6B | $184.2B | $102.3B | $11.4B | $72.2B |
| FY2018 | $258.8B | $176.1B | $82.7B | $11.9B | $79.4B |
Microsoft generated $281.7B in revenue for fiscal year 2025. That represents a +14.9% change from $245.1B in fiscal year 2024.
Yes, Microsoft is profitable. The company reported net income of $101.8B in fiscal year 2025, representing a net profit margin of 36.1%. In the prior fiscal year 2024, net income was $88.1B.
Microsoft's gross margin for fiscal year 2025 was 68.8%, calculated from gross profit of $193.9B on revenue of $281.7B. Over the past 5 years, gross margins have ranged between 68% and 70%.
Microsoft employs approximately 228,000 people worldwide. The company is headquartered in Redmond, WA and was founded in 1975.
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