Microsoft reported its first quarter 2025 earnings and it showed that its search and advertising revenue was up 18%. The previous quarter it was up 19%, but as I noted then, the last time it was up over 19% in a quarter before last quarter was 10 quarterly earning reports ago, in Q3 2022.

Microsoft wrote, "Search and news advertising revenue excluding traffic acquisition costs increased 18% (up 19% in constant currency)."

Here are the highlights of the report:

Revenue was $65.6 billion and increased 16%
Operating income was $30.6 billion and increased 14%
Net income was $24.7 billion and increased 11% (up 10% in constant currency)
Diluted earnings per share was $3.30 and increased 10%
 

Here is how the advertising revenue chart looks specific to search and news advertising revenue increases quarter to quarter (over):

So there is still good growth here, like last quarter, but a slight dip in that growth from last quarter.

Microsoft's earnings and revenue beat for the fiscal first quarter, as Azure cloud infrastructure business grew faster than predicted. But the company issued called for slower growth than expected for the current quarter, sending shares down 4% after hours.

“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process," said Satya Nadella, chairman and chief executive officer of Microsoft. “We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”

“Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.