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Microsoft (MSFT) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Apr 30, 2025
Microsoft (MSFT) reported revenue of $70.1B for the third quarter fiscal 2025 (Q3 FY25), +13% from a year earlier and +0.6% from the quarter before. Operating margin was 45.7%, net earnings $25.8B (36.9% of revenue).
Microsoft, Q3 FY25: revenue $70.1B (+13% year over year), operating margin 45.7%, net earnings $25.8B, operating cash flow $37.0B. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $70.1B | +0.6% | +13% |
| Gross profit | $48.1B | +0.7% | +11% |
| Operating profit | $32.0B | +1% | +16% |
| Net earnings | $25.8B | +7% | +18% |
| Operating cash flow | $37.0B | +66% | +16% |
| Free cash flow | $20.3B | +213% | -3% |
What changed
Revenue was $70.1B in Q3 FY25, up 13% year over year and up 1% from the previous quarter. Server Products and Cloud Services was the largest line at 35% of revenue. Server Products and Cloud Services added $4.5B year over year (up 22%), 55% of the total change.
Gross margin was 68.7%, down 1.4 points from a year earlier. Operating profit was $32.0B, a 45.7% margin (up 1.1 points year over year). Of the extra revenue versus a year earlier, 54% reached operating profit, above the 45% margin then. Operating expenses grew 2% against revenue growth of 13%. Net earnings were $25.8B, up 18% year over year. The effective tax rate was 17.7%.
Operating cash flow was $37.0B (up 16% year over year), 143% of net earnings. Non-cash charges added back $7.3B of depreciation and amortization and $3.0B of share-based compensation. Capital expenditures of $16.7B left free cash flow of $20.3B.
Questions
What was Microsoft's revenue in the third quarter fiscal 2025?
Microsoft (MSFT) reported revenue of $70.1B for the third quarter fiscal 2025 (Q3 FY25), +13% from a year earlier and +0.6% from the quarter before.
Was Microsoft profitable in the third quarter fiscal 2025?
Operating profit was $32.0B (45.7% of revenue) and net earnings $25.8B.
Source: Microsoft 10-Q on SEC EDGAR.