Microsoft powers past Q4 earnings and revenue expectations
Double-digit revenue growth in its cloud and productivity businesses helped push revenue 18% higher.
Shares of Microsoft surged after the company blew past fiscal fourth-quarter earnings and revenue expectations.
Shares were up 7.3% in recent after-hours trading.
The tech giant reported revenue of $76.4 billion, up 18% year on year, surpassing Wall Street estimates of $73.86 billion. Earnings per share came in at $3.65, compared with analysts’ expectations of $3.37, according to FactSet.
Breaking down the results by the company’s businesses:
☁️ 🤖 “Intelligent Cloud” (Azure, server products): $29.9 billion in revenue, up 26% year on year
📝 📊 “Productivity and Business Processes” (Microsoft 365, LinkedIn, Dynamics): $33.1 billion in revenue, up 16% year on year
💻 🎮 “More Personal Computing” (Windows, Xbox, Bing): $13.5 billion in revenue, up 9% year on year
Microsoft CEO Satya Nadella said demand for cloud computing and AI was powering the company’s strong performance:
“Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”
Capital expenditures for the quarter were $17.08 billion, compared to analysts’ consensus of $17.84 billion. The company had forecast an increase from the third quarter’s $16.7 billion.
Microsoft’s Azure cloud business grew 39% year on year.
For FY 2025, total revenue was $281.7 billion, up 15%.
