Microsoft reported its earnings for the fourth quarter of fiscal year 2025 on July 31, showing revenue of $76.4 billion, an 18% year-over-year increase. The company reported a net income of $27.2 billion, representing a 24% increase from the same period last year.
The growth was primarily driven by Microsoft’s cloud segment, which has continued to perform strongly.
Intelligent Cloud revenue came in at $29.9 billion, an increase of 26%. Within this segment, Azure and other cloud services grew by 39% signalling sustained enterprise demand for Microsoft’s infrastructure and platform offerings.
“Cloud and AI is the driving force of business transformation across every industry and sector,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34% driven by growth across all workloads.”
“We opened new DCs across 6 continents and now have over 400 data centres across 70 regions, more than any other cloud provider,” he added. Microsoft said it plans to spend a record $30 billion in the first quarter of this fiscal year.
Azure Foundry and Copilot Surge
Nadella announced significant growth in the company’s AI platform offerings, citing widespread adoption of Azure AI Foundry and a sharp rise in Copilot usage across products and organisations.
Speaking during the company’s Q4 FY2025 earnings call, Nadella said, “This year, we launched Azure AI Foundry to help customers design, customise and manage AI applications and agents at scale.”
Azure AI Foundry now supports a wide range of foundation models from multiple providers, including OpenAI, Meta, DeepSeek, and xAI’s Grok, with support for Mistral AI and Black Forest Labs expected soon.
Nadella noted that customers can provision inferencing throughput once and apply it across more models than any other hyperscaler. “We shipped 15 models from OpenAI alone on Foundry this year,” he said, adding that Foundry is already being used by 14,000 customers to automate complex tasks through agents.
Microsoft is also seeing substantial uptake of its Copilot product suite. Nadella said the company’s family of Copilot apps has surpassed 100 million monthly active users, and AI features across all Microsoft products now see over 800 million monthly active users. “Microsoft 365 Copilot is becoming the new way to organise work and workflow,” he said.
Usage is also growing among software developers. GitHub Copilot, Microsoft’s AI coding assistant, now has 20 million users. Nadella said enterprise customers for GitHub Copilot increased 75% quarter-over-quarter, and 90% of Fortune 100 companies now use the tool. “GitHub usage and repos are seeing explosive growth because of AI,” he said. AI-related projects on GitHub have more than doubled in the past year.
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