Pro Tech Radar

Microsoft 365 and Azure revenues push company results to another record high

May 1, 2025
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  • Microsoft's quarterly revenue has exceeded $70 billion, up 13% YOY
  • Azure and other cloud services were up 33%
  • Copilot users are now up 3-4x YOY

Microsoft CEO Satya Nadella says cloud and AI demand has been the key drivers for its latest spectacular revenue growth for its most recent quarter, ending March 31, 2025.

Of the $70.1 billion in third-quarter revenue, Microsoft Cloud revenue stood at $42.4 billion, up a notable 20% year-over-year. The company also saw a 33% increase to Azure and other cloud service revenues.

In fact, it was a strong-performing quarter across the board for the company, including for consumer-facing products like Xbox, Windows OEM and devices, and Microsoft 365.

Microsoft revenue is up across all categories

Thanks to the huge growth in Azure and other cloud services, driven by continued interest in artificial intelligence and other powerful cloud computing applications, Redmond noted a 22% increase in revenue for server products and cloud services.

The positive news comes just weeks after Microsoft confirmed it would be putting a stop to its $1 billion data center project in Ohio amid cost concerns resulting from trade war-induced tariffs, stating, "after careful consideration, we will not be moving forward at this time with our plans."

Speaking on the earnings call, Nadella indicated the company remains committed to expansion in this segment: "We continue to expand our data center capacity. This quarter alone, we opened [data centers] in 10 countries across four continents."

On the AI front, Nadella revealed on the earnings call that 15 million people are now using the GitHub Copilot coding assistant – a fourfold increase compared with this time last year.

Nadella also noted that "hundreds of thousands of customers across geographies and industries now use Copilot" in Microsoft 365, marking an equally impressive 3x increase year-over-year, but the CEO failed to note exactly how many users the AI assistant has amassed.

Consistent growth across the Microsoft 365 services added to the company's financial success, with Commercial products up 11% and Consumer products up 10%.

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