Microsoft has unveiled its financial report for the fourth quarter of fiscal year 2025, demonstrating a robust overall performance. The total revenue witnessed a 17% year - on - year surge, soaring to $81.3 billion. This growth was predominantly propelled by its cloud computing business.

The gaming sector, however, encountered significant challenges. Revenue from Xbox hardware took a nosedive, plummeting 32% year - on - year, while the overall revenue of the gaming department dropped by 9%. Nevertheless, service businesses like Game Pass subscriptions managed to remain relatively stable. To offset the decline in hardware sales, Microsoft has implemented price hikes.

The Windows OEM and device business experienced only a modest 1% growth, falling well short of the anticipated 'upgrade surge' levels. Over the years, as the Xbox business has witnessed a downturn, its prominence in Microsoft's strategic plan has waned. The company's main growth drivers have now shifted towards businesses such as Azure cloud services and Microsoft 365 commercial subscriptions.

Among these segments, the 'Productivity and Business Processes' division reported revenue of $34.1 billion, representing a 16% year - on - year increase. The 'Intelligent Cloud' segment, on the other hand, reported revenue of $32.9 billion, a remarkable 29% year - on - year jump, establishing itself as one of the company's fastest - growing and most pivotal business pillars.