Microsoft Delivers Record Revenue Amid Robust Performance

Microsoft Corporation today announced impressive results for the fourth quarter of fiscal year 2025 (calendar Q2 2025), significantly exceeding analyst expectations across all key financial categories. The company's shares gained as much as 6% in after-hours trading, recouping earlier losses in Nasdaq 100 futures contracts. Additionally, Meta also reported very strong results.

Key Financial Data for Fiscal Q4 2025 (Calendar Q2 2025)

Revenue and Profitability:

• Revenue: $76.44 billion (+18% y/y) against an expected $73.89 billion (3.5% beat)

• EPS: $3.65 against an expected $3.37 (8.3% beat)

• Operating Profit: $34.3 billion (+23% y/y)

• Net Income: $27.2 billion (+24% y/y)

Business Segments:

• Intelligent Cloud: $29.88 billion (+26% y/y) against an expected $29.1 billion (2.7% beat)

• Productivity and Business Processes: $33.1 billion (+16% y/y) against an expected $32.15 billion (3.0% beat)

• More Personal Computing: $13.5 billion (+9% y/y) against an expected $12.67 billion (6.6% beat)

Microsoft Cloud:

• Microsoft Cloud Revenue: $46.7 billion (+27% y/y) vs. expected $45.96 billion (1.6% beat)

• Azure Growth: 39% in constant currency vs. an expected growth of 34.2%

Commentary on Results

The company showcased very strong figures, achieving record revenues and accelerating growth across most segments. Microsoft performed exceptionally well in a quarter that had brought considerable uncertainty regarding the outlook for international trade due to potential Trump tariffs, which could have deterred companies from investing in cloud solutions. However, these concerns ultimately proved unfounded.

Satya Nadella, Chairman and CEO of Microsoft, stated: "Cloud and AI are the driving force behind business transformation in every industry and sector." Nadella highlighted that Azure Cloud has already generated $75 billion in revenue this fiscal year, growing at a strong double-digit rate. The CEO indicated that the company's mission is to support clients in adopting new AI-related technologies. Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft, noted that the fiscal year concluded very strongly, with Microsoft Cloud achieving $46.7 billion, representing a 27% year-over-year increase.

Full-Year Performance

Microsoft concluded fiscal year 2025 with equally impressive full-year results:

• Annual Revenue: $281.7 billion (+15% y/y)

• Operating Profit: $128.5 billion (+17% y/y, +18% in constant currency)

• Net Income: $101.8 billion (+16% y/y, +15% in constant currency)

• Annual EPS: $13.64 (+16% y/y)

The company also reported returning $9.4 billion to shareholders in the form of dividends and share repurchases.

Market Reaction

Microsoft shares surged 6% in after-hours trading, reflecting a positive investor reaction to results that significantly surpassed expectations. Azure's 39% growth proved particularly impressive, comfortably exceeding analyst forecasts of just over 34.2%. These results underscore Microsoft's position as a key player in cloud solutions, which now serve as the company's primary growth engine. Beyond its strong focus on cloud offerings, the company is also clearly investing in AI. Market sentiment suggests that CoPilot could represent another significant growth segment in the coming quarters.

Microsoft shares could reach $545 tomorrow, setting a new all-time high. Source: xStation5