Slide 1: Fourth Quarter Fiscal Year 2025 Results
£8 Microsoft Fourth Quarter Fiscal Year 2025 Results Satya Nadella Amy Hood Jonathan Neilson July 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 Q4 Financial Summary
FY25 Q4 Financial Summary ($ in billions, except per share amounts) FY25 Q4 Growth CC Growth* Productivity and Business Processes $33.1 16% 14% Intelligent Cloud $29.9 26% 25% More Personal Computing $13.5 9% 9% Revenue $76.4 18% 17% Gross margin $52.4 16% 15% Gross margin percentage 69% (1) pt Oper
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Commercial bookings growth (y/y) 17% [ 19% 30% / 23% 67% / 15% 18% / 17% 37% / 30% Commercial remaining performance obligation (in billions) $269 $259 $298 $315 $368 Commercial revenue annuity mix 97% 98% 97% 98
Slide 6: FY25 Q4 Other Financial Highlights
FY25 Q4 Other Financial Highlights Cash returned to shareholders Operating expenses Other income and expense Effective tax rate Capital expenditures Cash flow Includes non-GAAP constant currency (“C Returned $9.4 billion to shareholders with $6.2 billion in dividends and $3.2 billion in share repurc
Slide 7: FY25 Q4 Business Highlights
FY25 Q4 Business Highlights Productivity and Business Processes Intelligent Cloud +.) More Personal Computing Microsoft 365 Commercial products and cloud services revenue increased 16% (up 15% CC) driven by Microsoft 365 Commercial cloud revenue growth of 18% (up 16% CC) Microsoft 365 Consumer produ
Slide 8: Productivity and Business Processes
Productivity and Business Processes tte Overview Investor Metrics FY24 Q4 FY25 Q1 Microsoft 365 Commercial cloud revenue growth (y/y) 15% / 16% 15% / 16% Microsoft 365 Commercial seat growth (y/y) 7% 8% Microsoft 365 Consumer cloud revenue growth (y/y) 7% 6% (7% Microsoft 365 Consumer subscribers (i
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 16% (up 15% CC) * Microsoft 365 Commercial cloud revenue grew 18% (up 16% CC) with growth in revenue per user driven by E5 and M365 Copilot, as well as some
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 26% (
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services * Server products and cloud services revenue grew 27% + Azure and other cloud services revenue grew 39% driven by demand for our portfolio of services with growth across all workloads * Server products revenue declined 2% (down 3% CC)
Slide 12: More Personal Computing
+») More Personal Computing Overview Investor Metrics FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 Windows OEM and Devices revenue growth (y/y) (1)% / 0% 2% 4% 3% Xbox content and services revenue growth (y/y) 61% 61% 2% 8% / 9% Search and news advertising revenue (ex TAC) growth (y/y) 15% / 16% 18% / 19% 21% /
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 Gaming * Gaming revenue grew 10% * Xbox content and services revenue grew 13% (up 12% CC) driven by growth in first-party
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 fourth-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 reconci
Slide 16: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended June 30, 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) $64,727 $45,043 $17,118 $27,925 $22,036 $2.95 2025 As Reported (GAAP) $76
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Revenue Three Months Ended June 30, ( in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2024 As Reported (GAAP) $28,627 $23,785 $12,315 2025 As Reported (GAAP) $33,112 $29,878 $13,451 Percentage Change Y/Y (GAAP) 16% 2
Slide 18: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Gross Margin Three Months Ended June 30, 2025 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 16% (1)% 15% Intelligent Cloud 17% (1% 16% More Personal Computing 15% 0% 15% Segme
Slide 19: Constant Currency Reconciliation
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended June 30, 2025 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage cense yy Commercial bookings 37% ()% 30% Commercial remaining performance obligation 37% (2)% 35% Microsoft Cloud revenue 27% (2
Slide 20: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended June 30, . aye Percentage ($ in millions) 2025 2024 Change Y/Y Net Cash from Operations (GAAP) $42,647 $37,195 15% Additions to Property and Equipment $(17,079) $(13,873) * Free Cash Flow $25,568 $23,322 10% *Not meaningful. Free cash flow is included as a
Slide 21: Microsoft
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