Microsoft’s cloud and AI companies are doing fairly nicely — and their influence is being felt throughout the corporate. In its Q2 2025 earnings, Microsoft introduced income of $69.6 billion for the quarter, up 12 % year-over-year, and internet earnings of $24.1 billion, which is up 10 % year-over-year.
As for the AI enterprise, CEO Satya Nadella says in an announcement that it has “surpassed an annual income run charge of $13 billion, up 175 % year-over-year.” The corporate’s Azure and different cloud providers enterprise grew 31 % year-over-year, a slight lower from 33 % YoY development the earlier quarter.
The corporate’s gaming revenues didn’t fare so nicely. Gaming income declined 7 %, and Xbox {hardware} income declined 29 %. Microsoft has been transferring away from a spotlight by itself {hardware} with messaging like its “That is an Xbox” advert marketing campaign and bringing Xbox Recreation Studios video games to different platforms, and people adjustments might be contributing to the decline.
Meaning the main focus is as an alternative on video games and providers, and that’s the place the enterprise is seeing some enhancements. Xbox content material and providers income had been up 2 %, “pushed by development in Xbox Recreation Cross,” Microsoft says. (Final quarter, Microsoft’s software program gaming revenues had been manner up at the same time as Xbox {hardware} income declined.)
Microsoft additionally mentioned that it noticed Home windows OEM and Gadgets income development of 4 % year-over-year, a slight bump from 2 % in Q1.