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💼 Microsoft’s (NASDAQ:MSFT) fiscal year 2025 started off strong, with Q1 revenue up 16% year-over-year to $65.59 billion, as all core segments contributed to this growth. Despite a competitive landscape, Microsoft’s core businesses—from cloud computing to productivity tools—demonstrated resilience and growth, underscoring its dominant position in the tech market.
📈 Net income rose 10.7% to $24.67 billion, while operating cash flow reached $34.18 billion, up from $30.58 billion last year. Adjusted cash flow also saw an impressive 44.6% increase, hitting $40.71 billion. Microsoft’s financial strength allowed it to maintain a substantial $33.31 billion in excess cash, following robust investments in share buybacks and dividends, highlighting solid cash management.
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🌐 The Intelligent Cloud segment led growth, with revenue rising 23% to $24.09 billion, thanks largely to a 33% increase in Azure revenue driven by AI demand. Although AI-related investments led to a slight margin dip, the segment remains highly profitable, showcasing Microsoft’s innovation in cloud services and its commitment to maintaining leadership.
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💡 Productivity and Business Processes also excelled, with a 12.3% revenue increase, reaching $28.32 billion. LinkedIn revenue grew 10%, while Microsoft 365’s commercial cloud segment rose 15%, boosted by growing demand from both enterprise and consumer markets. The segment’s profitability improved slightly, reflecting efficiencies across operations and a strong market position.
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🎮 More Personal Computing rounded out the quarter with 16.8% revenue growth, totaling $13.18 billion, led by a 61% boost in Xbox content and services following the Activision Blizzard acquisition. While hardware sales dipped, the growth in gaming content demonstrates Microsoft’s strength in consumer technology.
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