Key insights
7 takeaways · ~3 min read- 01Microsoft's net income for Q2 FY2025 (three months ended September 30, 2025) was $27.747 billion, an increase from $24.667 billion in the same period of FY2024. Diluted earnings per share rose to $3.72 from $3.30 year-over-year.
- 02Total revenue for Q2 FY2025 reached $77.673 billion, up from $65.585 billion in Q2 FY2024, driven primarily by a significant increase in service and other revenue ($61.751 billion in FY2025 vs. $50.313 billion in FY2024).
- 03Operating income grew to $37.961 billion in Q2 FY2025 from $30.552 billion in Q2 FY2024, despite a substantial increase in 'Other expense, net' to $3.660 billion from $283 million.
- 04Research and development expenses increased by 8% to $8.146 billion in Q2 FY2025, primarily due to investments in cloud and AI engineering, including compute capacity and AI talent.
- 05Microsoft repurchased 8 million shares of common stock for $4.0 billion in Q2 FY2025, with $53.4 billion remaining in its $60 billion share repurchase program. Dividends declared totaled $6.8 billion for the quarter.
- 06The company's property and equipment, net, increased to $230.861 billion as of September 30, 2025, from $204.966 billion as of June 30, 2025, with depreciation expense for the quarter at $7.1 billion.
- 07Microsoft faces intense competition across its markets and is making significant investments in cloud and AI infrastructure, which are expected to increase operating costs and potentially decrease operating margins.
Summary
SEC 10-Q filing for Microsoft, filed 2025-10-29.
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