---
title: "Microsoft: Business Model"
description: "Microsoft revenue by business segment and geography from its fiscal 2025 Form 10-K, with each part's share, growth and profitability explained."
canonical: https://www.getswoopr.com/stocks/companies/microsoft/business-model/
source: "Swoopr Investment: https://www.getswoopr.com"
---

# Microsoft Business Model & Revenue Engine

## Direct Answer

Microsoft reports revenue across 3 business segments in its fiscal 2025 Form 10-K. Productivity and Business Processes is the largest, with $121 billion of revenue (43% of the total), followed by Intelligent Cloud at $106 billion (38%). 51% of revenue came from the United States.

## How Does Microsoft Make Money?

No single line supplies a majority of revenue: the largest, Productivity and Business Processes, is 43%, which spreads Microsoft's exposure across several demand drivers. Between fiscal 2024 and 2025, Intelligent Cloud grew fastest (+21.5%) and More Personal Computing slowest (+7.5%), so the revenue mix tilts toward Intelligent Cloud while that gap lasts.

| Segment | FY2025 revenue | FY2024 revenue | Share of revenue | Change |
| --- | --- | --- | --- | --- |
| Productivity and Business Processes | $121 billion | $107 billion | 42.9% | 13.1% |
| Intelligent Cloud | $106 billion | $87.5 billion | 37.7% | 21.5% |
| More Personal Computing | $54.6 billion | $50.8 billion | 19.4% | 7.5% |

![Bar chart of Microsoft revenue by segment for fiscal 2025: Productivity and Business Processes 42.9%, Intelligent Cloud 37.7%, More Personal Computing 19.4%.](https://www.getswoopr.com/images/charts/microsoft-business-model-segment-mix.webp)
*Microsoft revenue by segment as a share of total revenue, from the table above. The largest is highlighted. Select the chart to open it full size.*

## Which Microsoft Segments Earn the Most?

| Segment | FY2025 segment operating income | Segment margin |
| --- | --- | --- |
| Productivity and Business Processes | $69.8 billion | 57.8% |
| Intelligent Cloud | $44.6 billion | 42.0% |
| More Personal Computing | $14.2 billion | 25.9% |

Segment operating income is the profit measure Microsoft reports to its chief operating decision maker for each segment. It usually leaves out corporate costs that are not allocated to a segment, so the segments usually add up to more than consolidated operating income, and margins are comparable within Microsoft more safely than against another company.

## Where Does Microsoft's Revenue Come From?

Regions follow the definitions in the filing; most companies assign revenue by customer location.

| Region | FY2025 revenue | FY2024 revenue | Share of revenue | Change |
| --- | --- | --- | --- | --- |
| United States | $145 billion | $125 billion | 51.3% | 15.9% |
| Outside the United States | $137 billion | $120 billion | 48.7% | 13.9% |

## What the Segment Figures Do Not Show

The rows above add up to 100% of Microsoft's reported revenue for fiscal 2025; the difference is intersegment eliminations, corporate revenue or items the company reports outside its segments. Segment definitions are management's choice and change when a company reorganizes, in which case it restates prior years in the next filing, so a multi-year comparison should use the figures from a single filing. Revenue shows where sales come from, not where profit or cash is earned: a small segment can carry most of the margin.

## Where These Numbers Come From

Every figure on this page is a value Microsoft reported in the segment note and revenue disclosures of its Form 10-K filed July 30, 2025 (accession 0000950170-25-100235), read from the SEC's Financial Statement Data Sets. The prior-year column is the comparative figure from that same filing, so it reflects any restatement for a change in segments. Category names are the company's own XBRL labels, lightly reformatted for reading.

Rows that only total other rows (for example a "Products" line beside the individual products) are left out so nothing is counted twice. This page is educational and describes reported history for fiscal 2025; it is not a forecast or a recommendation.

## Frequently Asked Questions

### What are Microsoft's business segments?

In its fiscal 2025 Form 10-K, Microsoft reports revenue for Productivity and Business Processes, Intelligent Cloud and More Personal Computing.

### Which part of Microsoft brings in the most revenue?

Productivity and Business Processes, with $121 billion of revenue in fiscal 2025, or 43% of the total.

### How much of Microsoft's revenue comes from outside the United States?

49% in fiscal 2025, by the geographic breakdown Microsoft reports in its Form 10-K. Companies assign revenue to regions differently (customer location, shipping address or selling entity), so check the filing's definition before comparing companies.

## References

- [SEC EDGAR: MICROSOFT CORP Form 10-K filed July 29, 2026](https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm)
- [SEC EDGAR: MICROSOFT CORP annual and quarterly filings](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=789019&type=10-K)
- [SEC: EDGAR application programming interfaces (XBRL frames and submissions data)](https://www.sec.gov/search-filings/edgar-application-programming-interfaces)
- [SEC: Financial Statement Data Sets](https://www.sec.gov/data-research/sec-markets-data/financial-statement-data-sets)

## Related Pages

- [Microsoft company dossier](https://www.getswoopr.com/stocks/companies/microsoft/)
- [Microsoft financial metrics](https://www.getswoopr.com/stocks/companies/microsoft/metrics/)
- [Microsoft financial risk indicators](https://www.getswoopr.com/stocks/companies/microsoft/risks/)
- [Microsoft peer comparison](https://www.getswoopr.com/stocks/companies/microsoft/competitors/)
- [Microsoft business model and revenue mix](https://www.getswoopr.com/stocks/companies/microsoft/business-model/)
- [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/)

**[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)**

Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).