Microsoft (MSFT) Cloud and AI Drive Strong Revenue Growth

Microsoft delivered a strong fiscal Q4 earnings beat, but it was the company’s executive commentary that stole the spotlight. CEO Satya Nadella and CFO Amy Hood laid out a bullish view on the AI and cloud infrastructure cycle, marked by explosive Azure growth and record capital spending.

Conference Call Highlights:

🧠 Satya Nadella, CEO

“Microsoft Cloud surpassed $168 billion in annual revenue, and Azure alone exceeded $75 billion—growing 34% year over year.”

Microsoft now operates 400+ data centers in over 70 regions, and added over 2 GW of new capacity in the last 12 months—faster than any competitor.
On customer adoption:

“We’re still not at the finish line—perhaps only in the middle innings.”
— referring to continued cloud migrations from SAP, VMware, and others.
On AI adoption:

“Copilot products now serve over 100 million monthly active users across GitHub, Office, Windows, and security.”

💸 Amy Hood, CFO

“Q4 CapEx hit $24.2 billion, and we expect Q1 to exceed $30 billion.”

Spending is contract-backed, tied to long-term customer demand.
She emphasized discipline:

“The spend we’re making is correlated to on-the-books business we need to deliver.”
On demand imbalance:

“Demand remains higher than supply … I think I’ll only be in better supply/demand shape by December.”
Commercial bookings hit $100 billion+, and commercial remaining performance obligations (RPO) surged to $368 billion, pointing to durable revenue visibility.

📊 Q4 FY2025 Financials

Metric	Result	YoY Change
Revenue	$76.4 billion	▲ 18%
Operating Income	$34.3 billion	▲ 23%
Net Income	$27.2 billion	▲ 24%
Diluted EPS	$3.65	▲ 24%
Consensus EPS	~$3.37	✅ Beat

💼 Segment Performance

Microsoft Cloud: $46.7 billion, ▲ 27% (25% cc)
Azure: +39% YoY, annual run rate > $75B
Productivity & Business Processes: $33.1B, ▲ 16%
- Microsoft 365 Consumer: +20%
- Dynamics 365: +23%
More Personal Computing: $13.5B, ▲ 9%
- Xbox content/services: +13%
- Search Ads: +21%

📈 Stock Reaction

Metric	Value
Close	$533.50
Change	+$20.26 (+3.95%)
Open	$555.23
High	$555.45
Low	$531.90

MSFT jumped nearly 4% on the day, peaking early before settling just off highs.

🧾 Final Takeaway

While Microsoft’s top- and bottom-line beats were impressive, it’s the scale of investment and future demand confidence expressed in the call that sets this quarter apart. From record $24.2B CapEx in Q4 to a projected $30B+ in Q1, and from Azure’s 39% growth to over 100M Copilot users, Microsoft is positioning itself as the dominant infrastructure backbone for the AI age.