Microsoft has reported continued growth across its cloud and AI services in its third-quarter results for FY25, with its developer platform GitHub showing rapid adoption of AI-based tools. GitHub Copilot, the company's flagship AI coding assistant, has now surpassed 15 million users, growing more than fourfold over the past year. Announced alongside Microsoft's latest financial results, the milestone highlights the increasing reliance of developers on AI assistance in software development.
GitHub, a Microsoft subsidiary since 2018, described Copilot's evolution as moving beyond simple code suggestions into a broader ecosystem of intelligent development agents. CEO of GitHub, Thomas Dohmke, said the company's progress reflects the dedication of its teams: "This momentum was made possible by the dedication of our employees, VS Code and GitHub teams being committed to rapidly evolving our product with sustained velocity." "Year to date, we've posted 85 changelogs for GitHub Copilot, from MCP support to bring your own key or next edit suggestions – and we're not stopping there," Dohmke added.
Copilot, which initially launched as an AI pair programmer, now includes features such as Agent Mode in Visual Studio Code. This enables the tool to iterate on code, identify errors, and correct them autonomously. According to GitHub, Copilot's code review agent has already reviewed more than 8 million pull requests. Other components include Autofix, designed to help developers remediate security vulnerabilities. "What started as the first AI pair programmer is soon evolving into a SWE [software engineering] agent, embedded right where your code lives," Dohmke said. "And with it, GitHub itself will become not only the home of your repos, but also for your agents."
GitHub also reported it has released 85 updates to Copilot so far this year. These updates introduced support for MCP (Microsoft Cloud Partner) configurations, compatibility with additional models, the option for enterprise users to bring their own encryption keys, and a feature offering next-edit suggestions based on code context. A number of enterprise customers, including Twilio, Cisco, HPE, Skyscanner, and Target, are adopting Copilot for use throughout the software development lifecycle, GitHub said. The tool is increasingly positioned as a core part of Microsoft's broader AI strategy for developers.
The Copilot announcement accompanied Microsoft's broader Q3 FY25 earnings report, which showed continued strength in cloud and AI-related business segments. For the quarter ending 31 March 2025, Microsoft reported revenue of USD $70.1 billion, a year-on-year increase of 13% (15% in constant currency). Operating income rose by 16% to USD $32.0 billion, and net income reached USD $25.8 billion, up 18% from the same period last year.
Chairman and CEO Satya Nadella highlighted the central role of AI in the company's growth strategy: "Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers." Chief Financial Officer Amy Hood also pointed to the role of AI and cloud in boosting revenue. "We delivered a strong quarter with Microsoft Cloud revenue of USD $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings," Hood said.
The 'Intelligent Cloud' segment, which includes Azure and GitHub, posted USD $26.8 billion in revenue, up 21% year-over-year. Azure and other cloud services were up 33% (35% in constant currency). In terms of operating expenses, Microsoft's research and development spend totalled USD $8.2 billion in the quarter, reflecting its ongoing investment in AI and cloud technologies.
Further updates on GitHub Copilot and other AI offerings are expected to be shared at Microsoft Build, the company's annual developer conference, taking place from 19 to 22 May. As the tech industry continues to evolve, the significance of AI tools like GitHub Copilot in enhancing developer productivity cannot be overstated. The integration of AI in software development processes marks a transformative shift that is reshaping how developers work, making them more efficient and effective.
In a world where coding is increasingly being assisted by AI, the implications of such tools extend beyond mere convenience. The trend raises questions about the future of software development and the role of human coders. As Microsoft CEO Satya Nadella noted, as much as 30% of code in Microsoft's repositories is likely written by AI, underscoring the growing integration of artificial intelligence in coding practices.
Meanwhile, the rising adoption of GitHub Copilot among notable enterprises like Twilio, Cisco, HPE, SkyScanner, and Target reflects a broader trend in the industry. These companies are leveraging AI to equip their developers with tools that enhance productivity throughout the software development lifecycle. The momentum behind GitHub Copilot is indicative of a larger movement towards AI-driven solutions in tech, which many believe will redefine the landscape of software engineering.
As AI continues to advance, the conversation around its effectiveness and the potential for automation to replace human jobs becomes increasingly relevant. Executives in the tech industry are already acknowledging the need for AI aptitude among new hires, as highlighted in Microsoft's 2024 Work Trend Index report. The future may see a workforce where AI literacy becomes essential, and tools like GitHub Copilot will play a pivotal role in shaping the skills required for success in the tech world.
With the upcoming Microsoft Build conference, anticipation is building around what new features and advancements will be unveiled for GitHub Copilot and other AI tools. As developers worldwide embrace these innovations, the landscape of software development is poised for further transformation, driven by the capabilities of artificial intelligence.
