MSFT CY25Q1 Results are in

[md5crypto]

https://www.microsoft.com/en-us/Investor/earnings/FY-2025-Q1/press-release-webcasthttps://finance.yahoo.com/video/microsoft-earnings-top-estimates-sees-201805776.html
Highlights:

• Net income $24.7 billion on $65.6 billion revenue
• Xbox hw + content up 61% YOY driven mostly by ABK acquisition
• Search revenue up 18% YOY
• Azure up 33% YOY

Nothing on Surface, I assume it's flat. Amazing how they are more profitable then ever despite all the mobile & Windows 10 disasters. I assume Xbox growth YOY in FY 2025 will be far less since the new baseline is much higher now.

 

[LordDaMan]

Nothing on Surface, I assume it's flat. Amazing how they are more profitable then ever despite all the mobile & Windows 10 disasters. I assume Xbox growth YOY in FY 2025 will be far less since the new baseline is much higher now.

The mobile "disaster" was about 8 years ago. The final update to that os was over 4 years go. Microsoft stock has doubled in that time frame going form roughly 200 a share to 400 a share. This is a company with over 7,000,000,000 (yes, 7 billon) shares of stock making this an absurdly massive growth in a stock that shouldn't grow by that much due of the sheer amount of stock out there.

 

[YoHo]

What is the Windows 10 disaster?

 

[Nevarre]

What is the Windows 10 disaster?

Uptake of Windows 11 has not been a disaster but it has been slower than typical, certainly worse than the uptake of Windows 10 but the bar Win10 had to clear to be better than Win8.x for business use was low. There's a lot of reasons behind that lag including simple preference, but Win10's EoL date is <1 year away and it's looking like a hard target to hit. There still plenty of hardware out that that would be in spec to run Windows 11 if not for the additional TPM and related requirements and I get the impression that users are so fed up (if not for forced upgrades, then for CoPilot/Recall reasons and other places where backwards compatibility is more problematic) that they're going to hold off until the very last second to see if Microsoft blinks. This isn't necessarily a good time for companies to buy fleets of hardware (because Intel and interest rates).

MS will announce pricing for corporate fleets who want to stay on Win10 a little longer, but I think they wanted to get quarterly results out first.

Besides, Microsoft promised that Win10 was going to be the last upgrade ever.

 

[ant1pathy]

I'd be on 11, but the TPM requirement. I'm not going to upgrade a perfectly good gaming desktop tower until my hand is forced.

 

[LordDaMan]

From the 10Q

Windows and Devices revenue decreased slightly. Windows OEM and Devices revenue increased 2% driven by growth in Windows OEM, offset in part by a decline in Devices.

So Microsoft sold slightly more windows licenses to OEMs YoY

 

[md5crypto]

I meant Windows 8.

 

[YoHo]

That makes more sense. Windows uptake was slower due to the stickiness of 7, but it wasn't that slow and it was certainly never a disaster.

I'm not sure the TPM requirement and hesitancy for Windows11 is quite the issue it's made out to be. Most of the people I know who are annoyed by the TPM requirement are also the type of people that would go through the hack to get around that. I hear more complaining about the default UI changes. Personally if I wanted my UI to look more like Macintosh...I'd buy a Macintosh.

 

[md5crypto]

Nice to see Microsoft backtracking on Recall. They better really, really, really get it right. It should be opt-in on the OOBE and there should be a simple toggle in Settings to turn it off. I'd like it better if you could completely uninstall it.