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REDMOND, Wash., Oct. 29, 2025 /PRNewswire/ -- Microsoft Corp. today announced the following results for the quarter ended September 30, 2025, as compared to the corresponding period of last fiscal year:
- Revenue was $77.7 billion and increased 18% (up 17% in constant currency)
- Operating income was $38.0 billion and increased 24% (up 22% in constant currency)
- Net income, on a GAAP basis, was $27.7 billion and increased 12%, and on a non-GAAP basis was $30.8 billion and increased 22% (up 21% in constant currency)
- Diluted earnings per share, on a GAAP basis, was $3.72 and increased 13%, and on a non-GAAP basis was $4.13 and increased 23% (up 21% in constant currency)
- Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below
"Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact," said Satya Nadella, chairman and chief executive officer of Microsoft. "It's why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead."
"We delivered a strong start to the fiscal year, exceeding expectations across revenue, operating income, and earnings per share," said Amy Hood, executive vice president and chief financial officer of Microsoft. "Continued strength in the Microsoft Cloud reflects the growing customer demand for our differentiated platform."
The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.
Three Months Ended September 30, | |||
($ in millions, except per share amounts) | Net Income | Diluted Earnings per Share | |
2024 As Reported (GAAP) | $24,667 | $3.30 | |
Impact from investments in OpenAI | 523 | 0.07 | |
2024 As Adjusted (non-GAAP) | $25,190 | $3.37 | |
2025 As Reported (GAAP) | $27,747 | $3.72 | |
Impact from investments in OpenAI | 3,086 | 0.41 | |
2025 As Adjusted (non-GAAP) | $30,833 | $4.13 | |
Percentage Change Y/Y (GAAP) | 12 % | 13 % | |
Percentage Change Y/Y Constant Currency | 11 % | 11 % | |
Percentage Change Y/Y (non-GAAP) | 22 % | 23 % | |
Percentage Change Y/Y (non-GAAP) Constant Currency | 21 % | 21 % | |
Business Highlights
Microsoft Cloud revenue was $49.1 billion and increased 26% (up 25% in constant currency), and...