Microsoft reported its second quarter 2025 earnings and it showed that its search and advertising revenue was up 21%. The previous quarter it was up 18%, then 19% but before than it was 12% and 8% - so things are looking more positive.
Microsoft wrote, "Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)."
Here are the highlights of the financial report:
- Revenue was $69.6 billion and increased 12%
- Operating income was $31.7 billion and increased 17% (up 16% in constant currency)
- Net income was $24.1 billion and increased 10%
- Diluted earnings per share was $3.23 and increased 10%
Here is how the advertising revenue chart looks specific to search and news advertising revenue increases quarter to quarter (over):
“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," said Satya Nadella, chairman and chief executive officer of Microsoft. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”
“This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. ”We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”
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