In its Q2 2025 earnings report, Microsoft announced a revenue of $69.6 billion, a 12% increase year-over-year, with a net income of $24.1 billion, up 10%. The company's AI sector, led by CEO Satya Nadella, reported a surpassing annual run rate of $13 billion, a 175% growth year-over-year. Azure and cloud services increased by 31%, albeit a slight dip from previous quarters. However, gaming revenues dropped by 7%, with Xbox hardware falling dramatically. While Xbox content revenues edged up 2% due to Xbox Game Pass growth, overall shifts in strategy have impacted hardware sales.
Microsoft's Q2 2025 earnings reveal strong growth in cloud and AI, with Azure rising 31% year-over-year, overshadowing declines in gaming revenue.
CEO Satya Nadella highlighted that the AI business has surpassed a $13 billion annual revenue run rate, marking a 175% increase year-over-year.
Despite a decline in gaming hardware revenue, Xbox content and services rose 2%, driven by successful growth in Xbox Game Pass.
The overall revenue for Microsoft reached $69.6 billion in Q2 2025, reflecting a 12% yearly increase and solid gains in cloud services.
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