Microsoft has published its financial results for Q3 2025, reporting a “record quarter” overall which included a 6% revenue increase in its gaming segment.

The numbers:

For the three months ended March 31, 2025:

• Revenue: $70.1 billion (up 13% year-on-year)
• More Personal Computing (inc. Xbox) revenue: $13.4 billion (up 6% year-on-year)
• Operating income: $32 billion (up 16% year-on-year)
• Net income: $25.8 billion (up 18% year-on-year)

The highlights:

Microsoft CEO Satya Nadella described Q3 as a “record quarter”, driven by its Cloud services which surpassed $42.4 billion in revenue (up 20% year-on-year).

Its gaming segment also saw an increase of 5%, with Xbox content and services experiencing an 8% rise driven by the success of Xbox Game Pass, Call of Duty, and Minecraft.

In its earnings call, Nadella revealed that Microsoft was the top publisher on Xbox and PlayStation stores when it came to pre-orders and pre-installs.

PC Game Pass revenue increased over 45% year-on-year, while Xbox Cloud Gaming set a new record this quarter, with 150 million hours played compared to 140 million in Q2.

Nadella also acknowledged the continued success of The Minecraft Movie, which surpassed $550 million globally after ten days in theatres.

“It is fantastic to see the success of The Minecraft Movie, which is the top grossing film of the year,” Nadella said.

“In addition to monetising our IP in new ways, we have seen a 75% increase in weekly active users of Minecraft year-on-year since the release.”

Looking ahead, Microsoft expects gaming revenue to grow in the “mid-single digits”. Xbox content and services revenue growth is predicted to rise in the “high-single digits driven by first-party content”.