Microsoft reported its fourth quarter 2025 earnings and it showed that its search and advertising revenue was up for the third time in a row by 21%. The previous two quarters it was up 21% as well, then the quarter before that was up 18%, then 19% but before that it was 12% and 8%.
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 $76.4 billion and increased 18% (up 17% in constant currency)
- Operating income was $34.3 billion and increased 23% (up 22% in constant currency)
- Net income was $27.2 billion and increased 24% (up 22% in constant currency)
- Diluted earnings per share was $3.65 and increased 24% (up 22% in constant currency)
Here is how the advertising revenue chart looks specific to search and news advertising revenue increases quarter to quarter (over):
“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 percent, driven by growth across all workloads.”
“We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7 billion, up 27% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Microsoft shares jumped 8% in extended trading on Wednesday after the company reported better-than-expected earnings and revenue for the fiscal fourth quarter.
Michael Schechter from Microsoft is happy:
$MSFT "Q4: Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 20% in constant currency)"
— Michael Schechter (@mikeschechter) July 30, 2025
Many people are saying this! 👇 https://t.co/jw8zidXb8D
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