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Microsoft Reports $81.3 Billion Revenue for Quarter, Stock Falls After Hours

lite News Desk 2 min read

At a glance

  • Microsoft posted $81.3 billion in revenue for the quarter ending December 31, 2025
  • Net income rose 60% year-over-year to $38.5 billion
  • After the earnings release, Microsoft’s stock price declined in after-hours trading

Microsoft released its financial results for the quarter ending December 31, 2025, reporting substantial increases in revenue and net income. The company’s earnings announcement was followed by a drop in its stock price during after-hours trading.

For the reported quarter, Microsoft’s revenue reached approximately $81.3 billion. The company’s net income under generally accepted accounting principles (GAAP) totaled $38.5 billion, reflecting a 60% increase compared to the same period in the previous year.

Microsoft’s capital expenditures rose to $37.5 billion for the quarter, which was a 66% year-over-year increase. The company attributed much of this rise to investments in artificial intelligence infrastructure. Microsoft Cloud revenue surpassed $50 billion during the same period, with Azure and other cloud services revenue growing by 39% year-over-year.

What the numbers show

  • Quarterly revenue: $81.3 billion
  • Net income: $38.5 billion, up 60% year-over-year
  • Capital expenditures: $37.5 billion, up 66% year-over-year
  • Cloud revenue: over $50 billion
  • Azure and other cloud services revenue growth: 39% year-over-year

Microsoft’s diluted earnings per share for the quarter were $5.16, which also represented a 60% increase compared to the previous year. The company’s operating income reached $38.3 billion, up 21% year-over-year.

Microsoft returned $12.7 billion to shareholders through dividends and share repurchases, marking a 32% increase from the prior year. The company stated that these returns were part of its ongoing capital allocation strategy.

CEO Satya Nadella stated that Microsoft’s AI business has grown to a size larger than some of the company’s major franchises. CFO Amy Hood said Microsoft exceeded expectations in revenue, operating income, and earnings per share for the quarter.

The company’s financial report highlighted the impact of increased investment in AI and cloud infrastructure. Microsoft’s results showed strong growth across its cloud and AI-related business segments during the quarter.

* This article is based on publicly available information at the time of writing.

Sources and further reading

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