Microsoft Earnings Beat Expectations
Microsoft reported better-than-expected earnings and revenue for the fiscal fourth quarter. The stock dropped in extended trading as investors focused on disappointing Azure revenue, but management called for accelerating in the quarters ahead. Total revenue increased 15% from a year earlier.
Microsoft shares fell as much as 7% in extended trading as investors looked past better-than-expected earnings and revenue and focused instead on disappointing cloud results.
But executives provided a dose of optimism when they predicted a cloud growth speed-up in the first half of 2025. Here's how the company did, compared with the LSEG consensus: Earnings per share: $2.95 vs. $2.93 expected Revenue: $64.73 billion vs. $64.39 billion expected Microsoft's revenue increased 15% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement.
Net income, at $22.04 billion, was up from $20.08 billion, or $2.69 per share, in the year-ago quarter. With respect to guidance, Microsoft called for fiscal first-quarter revenue between $63.8 billion and $64.8 billion, implying 13.8% growth at the middle of the range.
Analysts polled by LSEG were looking for $65.24 billion in revenue. The forecast included $15.25 billion in operating expenses at the middle of the range, under the StreetAccount consensus of $16.10 billion.
The tech giant doesn't disclose revenue from the category in dollars. Last week, Google parent Alphabet said revenue from its cloud business, encompassing Workspace productivity software and Google Cloud Platform infrastructure, went up by about 29%.
