Microsoft saw its overall revenue grow 18 percent during the company’s fiscal fourth quarter (Q4, coincides with calendar Q2) of the year, according to financial earnings released on Wednesday.
The company logged double-digit percentage increases across nearly every business segment, including its advertising unit, which saw revenue climb 21 percent compared to Q4 2024.
Microsoft logged $76.4 billion in revenue for the quarter ended June 30, an 18 percent increase year‑over‑year. Operating income climbed 23 percent to $34.3 billion, while net income reached $27.2 billion, up 24 percent from the same period last year. Diluted earnings per share landed at $3.65, exceeding Wall Street expectations.
The company does not break out advertising revenue as its own data point, but Microsoft said search and news-related advertising climbed 21 percent on a year-over basis, powered by higher demand and the rollout of new artificial intelligence-powered campaign targeting and measurement tools.
The company credited improved ad relevance and increased monetization opportunities across Bing, Edge, and Microsoft’s network of publishing partners for the uptick.
Microsoft is also increasingly focused on the connected TV (CTV) space, with its LinkedIn Ads taking advantage of ad inventory offered through streaming platforms like Paramount Plus to target high-level executives and senior management. Earlier this month, LinkedIn said it was partnering with Innovid to make its CTV advertising available through that company’s social advertising management platform, though the partnership won’t be fully realized until Microsoft’s fiscal Q1 2026, which wraps up in late September.
Revenue attributed to LinkedIn is also not offered as its own line item in Microsoft’s financial earnings report, but the company saw its revenue increase 9 percent on a year-over basis, the company said. In addition to advertising, LinkedIn’s social networking platform charges a monthly subscription fee for access to premium tools.
