is a senior editor and author of Notepad , who has been covering all things Microsoft, PC, and tech for over 20 years.
Microsoft just posted the fourth and final quarter of its 2025 fiscal financial results. The software maker made $76.4 billion in revenue and a net income of $27.2 billion during Q4. Revenue is up 18 percent, and net income has increased by 24 percent.
Like clockwork, cloud services are the strong point of Microsoft’s revenue this quarter. Azure revenue grew 39 percent year-over-year, and Microsoft CEO Satya Nadella says “Azure surpassed $75 billion in revenue” for the entire financial year, up 34 percent. The impressive cloud earnings come just weeks after the software maker laid off as many as 9,000 employees earlier this month.
Microsoft’s Surface Laptop. Photo by Chris Welch / The Verge
Windows and Surface revenue
The PC market is still feeling the effects of the Trump tariffs and consumer spending, while businesses look to refresh PCs ahead of Windows 10’s end of support in October. As a result, Windows OEM and devices revenue is up 3 percent year over year, driven by growth in Windows OEM revenue.
Gartner said earlier this month that PC shipments were up more than 4 percent in the recent quarter, thanks to a Windows 11 refresh cycle for desktop PCs. Microsoft primarily makes money from Windows through OEM revenue, the price that manufacturers pay to license Windows for laptops and PCs.
While this time last year Microsoft’s Surface revenue had been in decline for two years, Microsoft started combining Windows and devices revenue together during this past financial year, so it’s still not clear how Surface is performing.
Microsoft did launch two new Surface devices in the recent quarter, though: the 12-inch Surface Pro and 13-inch Surface Laptop. Both devices launched midway through the quarter, so the full impact of sales on Windows OEM and devices revenue won’t be felt until next quarter.
The Xbox Series X console Photo by Vjeran Pavic / The Verge
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