Catenaa, Thursday, July 31, 2025- Microsoft reported its fiscal fourth quarter earnings on Wednesday, where net income rose by 24% from last year, driven by revenue from cloud and AI services.
“Cloud and AI is the driving force of business transformation across every industry and sector,” Microsoft CEO Satya Nadella said in a statement.
“We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34%, driven by growth across all workloads.”
Its stock climbed around 7% on Thursday Morning, setting the company on track to become the second in the world to reach a $4 trillion market valuation.
For the quarter, Microsoft saw adjusted earnings per share (EPS) of $3.65 on revenue of $76.4 billion. Wall Street was anticipating adjusted EPS of $3.37 and revenue of $73.89 billion, according to Bloomberg analyst consensus estimates.
The company saw adjusted EPS of $2.95 and revenue of $64.72 billion in the same period last year.
Intelligent Cloud segment revenue, which includes Microsoft’s Azure business, topped out at $29.8 billion. Analysts were looking for $29.09 billion. Still, the company says demand continues to outstrip capacity.
But investors were unperturbed by the increase and instead focused on CEO Sundar Pichai’s commentary, indicating that Search volume grew by double digits in the quarter.
For the fiscal year 2025 that ended on June 30, Revenue stood at $281.7 billion, an increase of 15% year on year, while net income was $101.8 billion and increased 16%. Diluted earnings per share were $13.64 and increased 16%.
Microsoft returned $9.4 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2025.
