Microsoft has ended its fiscal year 2025 on a strong note, surpassing expectations for both revenue and earnings thanks to robust performance in its cloud and artificial intelligence (AI) businesses. For the fourth quarter, Microsoft reported revenue of $76.4 billion, an 18% increase year-over-year. Net income climbed to $27.2 billion, marking a 24% rise, while diluted earnings per share also grew 24% to $3.65—well above analyst forecasts.

The standout performers for the quarter were Azure and Microsoft Cloud. Azure’s annual revenue soared past $75 billion, growing 34% over the prior year, as businesses across industries increasingly adopted cloud solutions. Overall, Microsoft Cloud generated $46.7 billion in quarterly revenue, up 27% from the previous year, underscoring the company’s leadership in the cloud market.

AI is playing an increasingly central role in Microsoft’s success, accelerating growth across its entire tech stack. CEO Satya Nadella highlighted how cloud and AI are transforming businesses and driving new opportunities for innovation and expansion. Other business segments also posted gains, with Microsoft 365 and Dynamics cloud services delivering strong double-digit growth, driven by heightened demand for productivity and business applications.

Microsoft’s financial strength allowed it to return $9.4 billion to shareholders through dividends and share repurchases during the quarter. The company’s stock responded positively, rising both during regular and after-hours trading as investors expressed confidence in Microsoft’s sustained growth trajectory.

With these results, Microsoft has reaffirmed its position at the forefront of the cloud computing and AI revolution, setting the stage for continued growth in the year ahead.