Corporate overview
Business, headline metrics and revenue mix
$281,724M
Revenue FY2025
+14.9% YoY
$150,528M
EBITDA
53.4% margin
$128,528M
Operating income
45.6% margin
$101,832M
Net income
36.1% margin
$13.64
Diluted EPS
+15.6% YoY
$71,611M
Free cash flow
47.6% of EBITDA
Microsoft develops and supports a broad portfolio of software, services, devices and cloud solutions that help people and organisations be more productive, secure and competitive worldwide. Founded in 1975, it built its strategy around three ambitions, reinventing productivity and collaboration, building an intelligent cloud and edge platform, and creating more personal computing experiences, with AI now woven through nearly every offering. It reports across three segments: Productivity and Business Processes, spanning Microsoft 365, Office, Copilot, LinkedIn and Dynamics 365; Intelligent Cloud, spanning Azure, SQL and Windows Server, GitHub and Nuance; and More Personal Computing.
Revenue mix FY2025, by reportable segment
Productivity and Business Processes
42.9%
Company overview is an editorial rewrite of 10-K Item 1. Microsoft 10-K, accession 0000950170-25-100235.
Recent developments
Earnings releases and the executive summary
Key developments8-K Item 2.02, most recent first
2026-04-29Cloud and AI strength fuels third-quarter results
Net income $31.8 billion, up 23% on a GAAP basis and up 20% (18% in constant currency) non-GAAP.
2026-01-28Second-quarter results
Net income $38.5 billion, up 60% GAAP; $30.9 billion, up 23% non-GAAP.
2025-10-29Next chapter of the Microsoft-OpenAI partnership
Microsoft supports the OpenAI board forming a public benefit corporation and recapitalising.
Microsoft ended FY2025 with revenue of $281,724M against $245,122M a year earlier, net income of $101,832M against $88,136M, diluted EPS of $13.64 against $11.80, an operating margin of 45.6% against 44.6% and a gross margin of 68.8%. Segment revenue was $120,810M in Productivity and Business Processes, $106,265M in Intelligent Cloud and $54,649M in More Personal Computing. Fiscal 2026 has been an acceleration driven almost entirely by cloud and AI: third-quarter revenue was $82.9 billion, up 18% (15% in constant currency), and operating income $38.4 billion, up 20%.
Executive summary is authored and cited. ABI Nexa research, from company filings.
Financial performance
Five years of revenue, margins and cash
Five-year financials, $MFY2021 to FY2025
| Line | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|
| Revenue | 168,088 | 198,270 | 211,915 | 245,122 | 281,724 |
| EBITDA | 79,216 | 95,983 | 99,523 | 124,633 | 150,528 |
| Net income | 61,271 | 72,738 | 72,361 | 88,136 | 101,832 |
| Free cash flow | 56,118 | 65,149 | 59,475 | 74,071 | 71,611 |
Read-through
Revenue. FY2025 $281,724m, +14.9% Y/Y; five-year CAGR 13.8%.
EBITDA. $150,528m at a 53.4% margin, against 47.1% in FY2021.
Net income. $101,832m, +15.5% Y/Y, at a 36.1% net margin.
EPS. Diluted $13.64, +15.6% Y/Y; five-year CAGR 14.1%.
Cash. Operating cash flow $136,162m less capex $64,551m gives free cash flow of $71,611m, 47.6% of EBITDA.
Balance sheet. Net cash of $54,413m.
Microsoft 10-K. EBITDA is operating income plus depreciation and amortisation.
Intelligence OS
