Microsoft 2025 Q2 Earnings: Cloud and AI revenue climb

Microsoft reported Q2 2025 financial performance today with earnings per share of $3.23 on revenue of $69.6 billion, exceeding analyst estimates.

In announcing the results, CEO Satya Nadella highlighted “the massive opportunity ahead” for customers using AI and stated that the company’s AI business has an annual run rate of $13 billion, up 175 percent year-over-year.

Microsoft CFO Amy Hood noted total Microsoft Cloud revenue of $40.9 billion, up 21%. Business highlights announced by the company include:

• Azure and other cloud services revenue growth of 31%, in line with different analyst estimates
• Dynamics products and cloud services revenue increased 15% driven by Dynamics 365 revenue growth of 19%
• Microsoft 365 Commercial revenue growth of 15%

Last quarter, Microsoft reported Q1 2025 reported EPS of $3.30 on revenue of $65.6 billion, exceeding analyst estimates.

A year ago in Q2 2024 Microsoft reported EPS of $2.93 on revenue of $62.0 billion, also exceeding analyst estimates. At that time, Dynamics 365 revenue growth was 26% and Microsoft 365 Commercial cloud revenue growth was 20%.