Microsoft Reports Strong Q4 Earnings Amid Cloud Growth and Controlled Spending
After the market closed on Wednesday, Microsoft reported better-than-expected earnings for its fiscal fourth quarter ending June 30. The company saw revenue rise to $90 billion and operating income increase by 18% year-over-year (YoY) to $40.6 billion. Adjusted EPS came in at $4.74 per share, surpassing the consensus estimate of $4.24/share. Microsoft's cloud computing platform Azure drove significant growth, with revenue from its Intelligent Cloud segment rising 32% YoY to $39.3 billion. Despite a notable increase in capital expenditures (capex) compared to last year’s quarter, Microsoft maintained its full-year capex forecast at $175 billion, distinguishing itself from rivals like Alphabet and Meta who faced investor concerns over higher-than-expected spending. The stock rose 8% in after-hours trading following the report. However, shares are still down more than 15% year-to-date compared to broader market indices and cloud competitors.
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