“We’ve spent decades building an AI business bigger than some of our biggest franchises,” Microsoft CEO says during $81.3 billion quarterly earnings report.

New Delhi (India), January 29 (ANI): Microsoft Corp. announced its financial results for the quarter ended December 31, 2025, reporting revenue of $81.3 billion, an increase of 17% year-on-year.
Microsoft Chairman and CEO Satya Nadella said on X that the company is still in the early stages of AI adoption and broader impact on gross domestic product. He noted that Microsoft is already building an AI business bigger than some of the biggest franchises it has built over decades. He noted that Microsoft’s quarterly cloud revenue exceeded the $50 billion mark for the first time.
According to the release, the company’s operating income increased 21% to $38.3 billion, and generally accepted accounting principles (GAAP) net income reached $38.5 billion, marking a 60% growth. GAAP diluted earnings per share was $5.16.
“Microsoft Cloud revenue exceeded $50 billion in the quarter, reflecting strong demand for our portfolio of services,” said Amy Hood, Microsoft Executive Vice President and Chief Financial Officer. He added that sales, operating income and earnings per share all exceeded expectations. Non-GAAP net income, excluding the impact of the OpenAI investment, was reported to be $30.9 billion, an increase of 23%.
Nadella also highlighted that annual cloud revenue was less than $10 billion a decade ago, and attributed the current growth to the expansion of total addressable market and execution. He further explained, “The key metrics we’re optimizing for are tokens per watt and dollars per dollar, and it’s all about using silicon, systems and software to increase utilization and reduce TCO.”
According to Nadella, Microsoft has achieved a 50% increase in throughput for OpenAI inference, which powers Copilot.
The company is also focusing on new first-party systems and agent platforms, such as Maia 200. Nadella said the platform migration involves rewriting the software and considering the agent as a new app.
He confirmed that over 1,500 customers are using both Anthropic and OpenAI models on Foundry, and that over 250 customers are expected to process over 1 trillion tokens on the platform this year.
Operational momentum was reported across various segments, with Microsoft 365 Copilot reaching 15 million paid seats. GitHub Copilot’s subscribers grew 75% year-over-year to 4.7 million, and the number of medical document encounters more than tripled to 21 million.
Nadella said the company is confident in its ability to innovate and seize future opportunities as adoption accelerates. (Ani)