Slide 1: Fiscal Year 2025 Results
EE Microsoft ahalicom@ler-lac-a Fiscal Year 2025 Results Satya Nadella Amy Hood Jonathan Neilson April 30, 2025
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, which are any predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of fa
Slide 3: Financial Summary and Highlights
Financial Summary and Highlights Quarterly Business Highlights Segment Financial Overview Appendix All growth comparisons in this presentation relate to the corresponding period of last fiscal year unless otherwise noted. We have recast certain prior period amounts to conform to the way we internall
Slide 4: FY25 Q3 Financial Summary
FY25 Q3 Financial Summary ($ in billions, except per share amounts) FY25 Q3 Growth CC Growth* Productivity and Business Processes $29.9 10% 13% Intelligent Cloud $26.8 21% 22% More Personal Computing $13.4 6% 7% Revenue $70.1 13% 15% Gross margin $48.1 11% 13% Gross margin percentage 69% (1) pt Oper
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY24 Q3 FY24 Q4 Fy25 Q1 FY25 Q2 FY25 Q3 Commercial bookings growth (y/y) 29% / 31% 17% / 19% 30% / 23% 67% / 75% 18% / 17% Commercial remaining performance obligation (in billions) $235 $269 $259 $298 $315 Commercial revenue annuity mix 97% 97% 98% 97
Slide 6: FY25 Q3 Other Financial Highlights
FY25 Q3 Other Financial Highlights Cash returned to shareholders + Returned $9.7 billion to shareholders with $6.2 billion in dividends and $3.5 billion in share repurchases + Operating expenses were $16.1 billion, up 2% (up 3% CC) year-over-year driven by investments in cloud and Al Operating expen
Slide 7: FY25 Q3 Business Highlights
FY25 Q3 Business Highlights Productivity and Business Processes Intelligent Cloud +.) More Personal Computing Microsoft 365 Commercial products and cloud services revenue increased 11% (up 14% CC) driven by Microsoft 365 Commercial cloud revenue growth of 12% (up 15% CC) Microsoft 365 Consumer produ
Slide 8: Productivity and Business Processes
Productivity and Business Processes tte Overview Investor Metrics FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 Microsoft 365 Commercial cloud revenue growth (y/y) 17% 15% / 16% 15% / 16% 16% / 15% Microsoft 365 Commercial seat growth (y/y) 8% 7% 8% 7% Microsoft 365 Consumer cloud revenue growth (y/y) 8% 7% 6% (7
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Microsoft 365 Commercial * Microsoft 365 Commercial products and cloud services revenue grew 11% (up 14% CC) * Microsoft 365 Commercial cloud revenue grew 12% (up 15% CC) with Microsoft 365 Commercial seat growth of 7% which was driven by small and m
Slide 10: Intelligent Cloud
Intelligent Cloud Overview Investor Metrics Azure and other cloud services revenue growth (y/y) Trended Revenue Growth Server products revenue growth (y/y) Enterprise and partner services revenue growth (y/y) Growth rates include non-GAAP CC growth (GAAP % / CC %). Total Revenue + Revenue grew 21% (
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services * Server products and cloud services revenue grew 22% (up 24% CC) + Azure and other cloud services revenue grew 33% (up 35% CC) driven by demand for our portfolio of services, including 16 points from our Al services * Server products
Slide 12: More Personal Computing
+») More Personal Computing Overview Investor Metrics FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 Windows OEM and Devices revenue growth (y/y) 2% (1)% / 0% 2% 4% Xbox content and services revenue growth (y/y) 62% / 61% 61% 61% 2% Search and news advertising revenue (ex TAC) growth (y/y) 8% 15% / 16% 18% / 19% 2
Slide 13: More Personal Computing Highlights
+2) More Personal Computing Highlights Windows OEM and Devices + Windows OEM and Devices revenue grew 3% driven by growth in Windows OEM with inventory levels remaining elevated due to tariff uncertainty Gaming * Gaming revenue grew 5% (up 6% CC) * Xbox content and services revenue grew 8% (up 9% CC
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Our presentation of third-quarter performance includes non-GAAP financial measures. The following slides provide reconciliations between the GAAP and non-GAAP financial measures presented: + Constant currency reconciliations * Cash flow reconcil
Slide 16: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended March 31, a Gross Operating Operating Net Dilut ed ($ in millions, except per share amounts) Revenue + Earnings Margin Expenses Income Income per Share 2024 As Reported (GAAP) $61,858 $43,353 $15,772 $27,581 $21,939 $2.94 2025 As Reported (GAAP) $7
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Revenue Three Months Ended March 31, ( in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2024 As Reported (GAAP) $27,113 $22,141 $12,604 2025 As Reported (GAAP) $29,944 $26,751 $13,371 Percentage Change Y/Y (GAAP) 10%
Slide 18: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Gross Margin Three Months Ended March 31, 2025 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 10% 3% 13% Intelligent Cloud 13% 1% 14% More Personal Computing 9% 2% 11% Segment
Slide 19: Constant Currency Reconciliation
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended March 31, 2025 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage cense yy Commercial bookings 18% (1% 17% Commercial remaining performance obligation 34% (1)% 33% Microsoft Cloud revenue 20% 2
Slide 20: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended March 31, . aye Percentage ($ in millions) 2025 2024 Change Y/Y Net Cash from Operations (GAAP) $37,044 $31,917 16% Additions to Property and Equipment $(16,745) $(10,952) * Free Cash Flow $20,299 $20,965 (3)% *Not meaningful. Free cash flow is included as
Slide 21: EE Microsoft
EE Microsoft © Copyright Microsoft Corporation, All rights reserved,