Microsoft Tops Revenue Expectations In Fourth Quarter Earnings

Microsoft topped analyst revenue expectations Wednesday, announcing fiscal fourth-quarter results that revealed cloud and artificial intelligence growth as shares of the company jolted in after-hours trading.

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Key Facts

Microsoft reported revenue of $76.4 billion in its fourth quarter, up 18% from the same period last year and well above analyst forecasts of $73.8 billion, according to FactSet consensus.

Net income climbed to $27.2 billion, a 24% jump one year ago, with the company also reporting earnings per share of $3.65, above expectations of $3.38 per share.

Microsoft revealed revenue from Azure for the first time, revealing the companys cloud computing platform raked in over $75 billion in the 2025 fiscal year.

Microsofts stock leapt 7% in after-hours trading after closing at $513.24 Wednesday.

Tangent

Meta also reported earnings Wednesday, announcing a boost in revenue that sent shares skyrocketing 9.7% in after-hours trading

Key Background

Microsofts fourth quarter marked further AI growth for the company as it bolstered its cloud services and its CoPilot AI assistant, the latter of which helps with various tasks across Microsoft apps like Word, Powerpoint, Excel and more. Microsoft plans to invest $80 billion into AI data centers for its 2025 fiscal year to better meet AI demand. However, the company has also made cuts to its workforce this year, laying off some 6,000 employees across a wide range of teams and locations, representing a 3% reduction in its workforce.