Microsoft Reports Strong Q4 Earnings with Azure Revenue Surpassing $100 Billion
Microsoft reported strong fiscal fourth-quarter results, with earnings per share (EPS) of $4.81 and revenue reaching $90 billion—both exceeding Wall Street expectations. The company's cloud division, particularly Azure, saw significant growth, crossing the symbolic threshold of $100 billion in annual revenue for the first time, up 43% year-over-year. Microsoft Cloud generated $59.3 billion in revenue and commercial remaining performance obligations surged to $678 billion. Capital expenditures came in at $41 billion—below analysts' fears—and CFO Amy Hood indicated capex will grow further but remain within free-cash-flow positive territory. Analysts responded positively, raising most price targets for Microsoft stock, with Citi and Wells Fargo increasing their estimates to as high as $650 per share. The results contrasted sharply with Alphabet's recent guidance, which led to a 6% drop in its shares after it raised capex expectations.
Topics: Azure Cloud Revenue Milestone Earnings Beat Microsoft Stock Rally