Microsoft annual report letter to shareholders, fiscal 2025

About this letter

Satya Nadella, Microsoft's chairman and chief executive, wrote this letter for the company's 2025 annual report, covering the fiscal year to June 2025. It is addressed not only to shareholders but also to colleagues, customers and partners, and it opens by placing Microsoft, fifty years after its founding, in the middle of what Nadella calls the AI platform shift. Financially, he describes a year of record performance.

The letter is organised under three headings: the company's priorities, its responsibility and its culture. Beyond the cloud and infrastructure business, it reports on the spread of Copilot products, which passed 100 million monthly active users, and GitHub Copilot's more than 20 million users. The section on responsibility covers Microsoft Elevate, a five-year, $4 billion commitment to AI skills for schools, colleges and nonprofits, and the midpoint of its sustainability goals. Nadella closes with a question he put to employees in July about what they would be proud of fifteen years from now.

What to notice

1. 1

   Nadella reports revenue of $281.7 billion, up 15%, with Azure revenue passing $75 billion for the first time.