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Microsoft Reports 13% Revenue Growth, Faster Cloud Growth Than Expected

Home » Blog » Microsoft Reports 13% Revenue Growth, Faster Cloud Growth Than Expected
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Microsoft Reports 13% Revenue Growth, Faster Cloud Growth Than Expected

  • May 1, 2025
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Microsoft said Wednesday that its revenue grew 13% in the three months ending in March, a slightly faster rate than the quarter prior. Meanwhile, its revenue in its Azure cloud computing unit grew 33%, slightly higher than the growth the company had forecasted, reversing a slight slowdown in recent quarters. Shares jumped more than 5% in after-hours trading. The growth would have been two percentage points higher if not for foreign exchange fluctuations, the company said.

CEO Satya Nadella attributed the uptick in sales to customers who are using Microsoft’s cloud and AI software to “reduce costs and accelerate growth.” Microsoft has previously touted its rapid growth in AI products, including selling access to software from OpenAI and other AI providers to Microsoft cloud customers. Microsoft said on Wednesday that its AI business growth was driven in part by a new Azure commitment from OpenAI, while its overall Azure growth was bolstered by higher than expected sales of traditional, non-AI cloud services.

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Sheshagiri Anegondi

Sheshagiri helps companies reduce Software License & Support costs through deployment optimization and risk management in software license compliance audits. His core skills are Software License Management, Enterprise Software Sales & Sales Management.

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