Analysis of Revenues
Revenues as Reported
Microsoft Corp., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
- Overall Revenue Trend
- The total revenue demonstrates a consistent upward trajectory over the periods analyzed, increasing from 143,015 million US dollars in the year ending June 2020 to a projected 281,724 million US dollars by June 2025. This represents a near doubling of revenue in a five-year span, indicating robust growth.
- Server Products and Cloud Services
- This segment shows strong growth, rising from 41,379 million US dollars in 2020 to a forecasted 98,435 million US dollars in 2025. Growth is particularly notable between 2023 and 2025, suggesting an accelerating expansion in this area despite a slight decline between 2022 and 2023.
- Microsoft 365 Commercial Products and Cloud Services
- Revenue from Microsoft 365 Commercial products and cloud services grows substantially from 35,316 million in 2020 to 87,767 million in 2025. The jump between 2021 and 2023 is significant, with an increase from 39,872 million to 66,949 million, indicating strong market adoption and expansion of commercial cloud services during these years.
- Gaming
- Gaming revenue presents moderate growth overall, increasing from 11,575 million in 2020 to a projected 23,455 million in 2025. Volatility is present as revenue dipped slightly in 2023 relative to 2022 before rebounding sharply in subsequent years, pointing to some cyclicality or product lifecycle effects within this segment.
- LinkedIn revenue steadily rises from 8,077 million in 2020 to an estimated 17,812 million in 2025, reflecting continuous growth. The progression is smooth and consistent, demonstrating successful monetization and platform expansion.
- Windows and Devices
- This segment displays a contrasting pattern compared to other areas. Revenue remains relatively stable from 2020 through 2022 around 22,000 to 25,000 million but then declines significantly in 2023 to about 17,147 million and remains flat through 2025. This suggests a weakening in this business line, possibly due to market saturation or increased competition.
- Search and News Advertising
- The Search and News Advertising segment shows consistent growth, increasing from 7,740 million in 2020 to a projected 13,878 million in 2025. Growth rates appear steady, reflecting ongoing relevance and gradual expansion in this advertising space.
- Dynamics Products and Cloud Services
- Starting from no recorded revenue in 2020, this segment grows significantly to 7,827 million by 2025. The steady increase each year demonstrates successful development and penetration of Dynamics related cloud services.
- Enterprise and Partner Services
- Revenue in this segment grows modestly, from 6,409 million in 2020 to an estimated 7,760 million in 2025. Growth is somewhat slow and levels off in later years, indicating a mature and stable business line.
- Microsoft 365 Consumer Products and Cloud Services
- Revenue here increases from 6,457 million in 2020 to 7,404 million in 2025, with some fluctuations. A decline is observed around 2023, followed by recovery, which points to some variability in consumer demand or market conditions.
- Other
- The 'Other' category shrinks dramatically from 3,768 million in 2020 to near negligible levels by 2025, indicating divestitures, discontinuations, or reclassification of revenue streams during the period.