Microsoft's Financial Leap in Q2 2025

Microsoft Corporation announced a significant 12% increase in its second-quarter revenue for fiscal 2025, reaching $69.6 billion. This growth not only surpasses the figures from the previous year but also exceeds analysts' predictions. Despite this overall success, the company's Intelligent Cloud revenue, although up by 19% to $25.5 billion, did not meet the expected targets. Additionally, Azure revenue growth experienced a slight decline, moving from 33% in the last quarter to 31%.

Net Income and Operating Income Surge

The tech giant also reported a 10% increase in net income year on year, amounting to $24.1 billion, or $3.23 per diluted share. Operating income saw a more substantial rise, increasing by 17% to $31.7 billion.

AI Business Growth Highlighted by CEO

CEO Satya Nadella emphasized the company's innovation across its technology stack and its role in helping customers maximize the return on investment from AI. He noted that Microsoft's AI business has already achieved an annual revenue run rate of $13 billion, marking a 175% increase from the previous year.

Despite these achievements, Microsoft's stock experienced a 3.73% drop in after-hours trading, attributed to the weaker-than-anticipated growth in Intelligent Cloud and Azure revenues.