Microsoft reported strong fiscal Q4 2025 earnings, with results topping Wall Street forecasts and driving the stock up more than 6% in after-hours trading. The surge was fueled by exceptional growth in its cloud business.
Key Results:
Total Revenue: $76.4 billion, up 18% year-on-year
Operating Income: $34.3 billion, up 23%
EPS: $3.65, up 24%
Intelligent Cloud Revenue: $29.9 billion, up 26%
Azure & Cloud Services: +39%, exceeding expectations
Productivity & Business Processes: $33.1 billion, up 16%
More Personal Computing: $13.5 billion, up 9%
CEO Commentary:
Satya Nadella highlighted cloud and AI as key growth drivers, saying:
“Cloud and AI are driving business transformation across every industry. Azure surpassed $75 billion in annual revenue, up 34%, driven by growth across all workloads.”
Analyst View:
Morgan Stanley noted that Microsoft remains well-positioned in the generative AI space, calling its risk/reward profile “attractive” with potential for sustained mid-to-high-teens returns.
Summary: A massive 39% jump in Azure revenue cemented Microsoft’s strength in cloud and AI, sending shares higher after earnings.
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