How Microsoft Makes its Billions 💵

Key Takeaways

• Microsoft, the world's second-largest company by market cap, generates most of its revenue from its server products and cloud services division, totaling $97.7 billion in the fiscal year ending in June 2024.
• Office products and cloud services brought in $54.9 billion, increasing by roughly $10 billion since 2022.
• Gaming stood among the fastest-growing revenue sources, growing by 39% to reach $21.5 billion, driven by Xbox and Activision Blizzard sales.

Microsoft Revenues Climb 16% in 2024

With $245 billion in revenues, Microsoft powers its business through a wide range of revenue streams, with its flagship cloud services business driving 40% of the total.

Driven by growth in cloud revenue, office products, and gaming, Microsoft reported net income of $88.1 billion in 2024, posting an impressive 22% annual increase.

Meanwhile, the number of Azure AI customers surpassed 60,000 globally, rising by nearly 60% over the year.