Microsoft stock rises on Azure growth and buybacks

Microsoft stock remains anchored by the company’s cloud and capital-return profile. Microsoft Corporation (US5949181045) reported fiscal 2025 revenue of $281.7 billion, up 15% year on year, while operating income reached $128.5 billion, up 17% in fiscal 2025, according to its latest annual report. The company also said it returned $9.7 billion to shareholders in the third quarter of fiscal 2025 through dividends and share repurchases.

Revenue up 15%

Azure and other cloud services grew 33% in fiscal 2025, which kept Microsoft’s growth mix tilted toward higher-margin software and infrastructure. Intelligent Cloud revenue reached $105.0 billion in fiscal 2025, while Productivity and Business Processes delivered $120.8 billion, both reinforcing the scale of the business model.

For investors, the key point is that Microsoft’s latest annual figures still show a company expanding at large-company scale while preserving operating leverage. Operating income of $128.5 billion in fiscal 2025 represented a 17% increase from the prior year, a faster pace than total revenue.

Cloud and capital returns

The mix matters because Azure growth of 33% in fiscal 2025 came alongside $9.7 billion in third-quarter fiscal 2025 capital returns. That combination of cloud expansion and buybacks is what keeps Microsoft stock in a different category from slower-growing megacap peers.

Microsoft also ended fiscal 2025 with continued heavy investment in infrastructure and software, including large-scale AI and cloud capacity spending. The annual report shows total revenue of $281.7 billion and operating income of $128.5 billion, a spread that underlines how much cash the business generates at scale.

Azure growth at 33%

Azure’s 33% fiscal 2025 growth is the clearest operating marker in Microsoft’s latest reporting period. That rate was far above the company’s overall 15% revenue growth and shows why cloud remains the central valuation driver.

Productivity and Business Processes also remained a major earnings pillar at $120.8 billion in fiscal 2025, while Intelligent Cloud at $105.0 billion stayed close behind. Together, those two segments accounted for the bulk of Microsoft’s reported revenue base.

Product line scale

Microsoft 365, Azure, LinkedIn, and Dynamics 365 remain the products and platforms most closely tied to the company’s recurring revenue model. The annual report ties those businesses to the fiscal 2025 revenue total of $281.7 billion and to the 17% operating income increase that followed.

Stock and scale

Microsoft shares traded at $0.00 as of 20 July 2026 in the available source set.