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Microsoft — FY25 Q3 Earnings Explained simply: where the money came from, and where it went

FY25 Q3 · Quarter ended 2025-03-31
Reported 2025-04-30

Microsoft grew 13% to $70.1B as Azure jumped 33% and the cloud passed $42B — AI demand is lifting every part of the business, even while the data-center buildout pushes costs up faster than revenue.

Revenue growth+13%EPS (GAAP)$3.46Azure growth+33%Microsoft Cloud$42.4B

Follow the money, left → right. Hover or tap any block or band to trace where that money comes from and where it goes. Tap a block to pin it and read what it means below. Tap the background to reset.

Revenue

In plain English

This quarter

Follow $100 of revenue

Charts in billions are hard to feel. Here is the same quarter, shrunk down: for every $100 Microsoft took in, this is where it went.

Productivity and Business Processes
$42.74
Intelligent Cloud
$38.18
More Personal Computing
$19.08
Cost of revenue
−$31.28
R&D
−$11.70
Sales & marketing
−$8.87
G&A
−$2.48
Other expense
−$0.89
Tax
−$7.93
Kept as profit
$36.86

The rows reconcile to the $36.86 kept as profit within $0.01 of rounding; other expense is a $0.89 drag per $100 of revenue.

Three things to take away

If you only remember three numbers from this quarter, make it these.

+33%

Azure is the growth engine

Azure and other cloud services grew 33%, and Microsoft Cloud revenue hit $42.4B — about 61% of all revenue. The growth story is the data centers.

$9.7B

Cash is flowing back to shareholders

Microsoft returned $9.7B in dividends and buybacks this quarter while still funding the AI buildout — the business throws off far more cash than it needs to run.

+6%

The PC side is steady, not driving growth

More Personal Computing grew 6% on Xbox content (+8%) and search ads (+21%), but at $13.4B it is under a fifth of revenue — the cloud and Office businesses set the pace.

Other quarters

The same chart, for every quarter we've covered.