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% |
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.