Microsoft’s search and news advertising revenue, helped by AI-powered systems, increased 21% in the March quarter.
Overall revenue in the three months was up 13% to $US70.1 billion.
“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," said Satya Nadella, chairman and chief executive officer of Microsoft.
“From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”
Emarketer senior director of briefings Jeremy Goldman said the result was a clear win in a quarter clouded by tariff fears and AI spending scrutiny.
“Search and news ad revenues grew a healthy 21%, buoyed by Microsoft's early experiments with AI-powered Copilot ads,” said Goldman said.
“Features like Showroom Ads and branded AI agents show potential—but they’re still early bets.
“Meanwhile, LinkedIn’s 7% growth marks a clear slowdown from last year’s double-digit pace. Our long-term ad forecast still shows gains through 2027, but the platform’s momentum has cooled, and it’s no longer pulling its weight as a major growth engine.
“Bottom line: This was a strong, steady quarter from a company that’s matured into its AI moment. Yes, growth is slowing in places like LinkedIn. Yes, infrastructure pullbacks raise questions. But Microsoft’s ability to turn AI enthusiasm into real revenue—and real margins—sets it apart in a field crowded with promise but short on payoff."
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