Microsoft beats Q4 estimates as Azure revenue tops $100B

Microsoft reported Q4 revenue of $90B, beating estimates by $2.37B, as Azure topped $100B in annual revenue for the first time.

"We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results," Chief Executive Officer Satya Nadella said.

Non-GAAP earnings per share came in at $4.74, beating the $4.24 consensus by $0.50. Net income rose 22% to $35.3B on an adjusted basis, while operating income climbed 18% to $40.6B. Cloud revenue totaled $59.3B, ahead of the $58.71B estimate. Microsoft 365 Copilot reached over 30 million paid seats.

Shares rose more than 3% in after-hours trading. The results signal that enterprise cloud and AI spending remain strong despite a broader tech selloff that has left Microsoft stock down about 17% year to date.

Segment performance was mixed. The Intelligent Cloud division drove growth, while More Personal Computing revenue fell 4% to $12.9B, dragged lower by a 7% decline in Windows OEM and devices and a 10% drop in Xbox. Search advertising revenue excluding traffic acquisition costs rose 10%, slowing from 12% growth in the prior quarter.

The company did not provide formal quarterly guidance. Two senior executives announced plans to retire during the period.

The beat reinforces confidence in Microsoft's AI monetization strategy, with Azure crossing the $100B annual revenue milestone. Investors will watch the Q1 earnings call for updates on AI-related margin trends and capital expenditure plans.

This article is for informational purposes only and does not constitute investment advice.