Microsoft CEO Satya Nadella (Jason Redmond/Getty Images)

Microsoft powers past Q4 earnings and revenue expectations

Double-digit revenue growth in its cloud and productivity businesses helped push revenue 18% higher.

7/30/25 4:06PM

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%.

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Figma rises on Citi’s Buy rating and $36 price target

Figma shares are rising moderately in pre-market trading after Citigroup initiated coverage with a Buy rating, saying demand tied to AI could help fuel the design software company’s next phase of growth, according to the note provided by Bloomberg.

Citi set a $36 price target on the stock and said Figma is well-positioned to offset AI disruption concerns through its own AI-driven consumption growth.

"Our proprietary customer and go-to-market (GTM) checks with hyperscalers and large financial services (FS) firms suggest strong seat upgrades & credit pack utilization, which offer positive reads on AI-monetization strategy," analyst Tyler Radke commented.

The company has been moving to roll out AI-native features in recent months, including developer-focused tools and in-house Figma agent aimed at making Figma a more central operating layer between product teams, engineers and AI systems.

Citi also pointed to upcoming product launches and potential monetization tied to Figma’s Model Context Protocol server which is an emerging framework that could allow AI systems to interact more directly with design environments.

Figma’s most recent earnings posted stronger-than-expected revenue growth while management raised its full-year guidance, saying that AI-related products were seeing encouraging adoption.

Still, the company that went public in 2025 has faced intense pressure with stock tumbling more than 50% this year-to-date over fears that automated AI code-generation tools and design alternatives from competitors like Anthropic might squeeze the need for seat-based design software.

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Lionsgate closes higher on Netflix acquisition rumor, streaming giant denies report

Shares for the film production company Lionsgate soared on Tuesday following rumors of a potential buyout.

According to a person familiar with the possible merger and acquisitions deal, streaming giant Netflix is one of the companies that may be interested in buying Lionsgate Studios, per reporting by Semafor. A Netflix spokesperson denied the rumor to Deadline.

Neither Lionsgate nor Netflix confirmed the news, but nevertheless the stock climbed, closing up 14%. The stock fell 4.6% in premarket trading after Netflix denied the rumor.

Netflix closed lower on news that Fox will acquire Roku in an approximately $22 billion deal after it was also rumored that the streaming company was interested in that acquisition. “Netflix did not make a bid for Roku,” a spokesperson told Semafor. This comes after Netflix withdrew its buyout bid for Warner Bros. Discovery earlier this year.

Lionsgate’s shares are up 77% since January. Lionsgate owns massive franchises like “John Wick” and “The Hunger Games.” The film company has a market cap of approximately $4.7 billion, making it roughly 5x smaller than Roku and 13x smaller than Warner Bros.

Microsoft powers past Q4 earnings and revenue expectations

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