Microsoft is a cloud company that also makes Windows

Microsoft's Gaming division made more revenue last year than LinkedIn. That's not the headline, but it probably should be.

The FY2025 annual report breaks out the revenue segments over $10B: Server Products & Cloud (Azure and the rest) at $98.4B, Microsoft 365 Commercial at $87.8B, Gaming at $23.5B, LinkedIn at $17.8B, Windows & Devices at $17.3B, and Search & News Advertising at roughly $14B.

What the numbers actually say

Azure and M365 Commercial alone account for two-thirds of the company. Windows (the thing most people think of when they hear "Microsoft") is about 6% of revenue.

This is a cloud and productivity company that also makes an operating system and a games console. Not the other way around.

A caveat worth noting

These are revenue figures, not profit. Microsoft doesn't publish margins per product. Gaming consoles are famously low-margin, so the profit picture could look very different. But the strategic direction is clear regardless: this company's future is Azure and M365, and everything else is secondary.

Worth bearing in mind the next time someone describes Microsoft as "a Windows company."

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