Microsoft reported fourth-quarter fiscal 2025 earnings of $3.95 per share, beating estimates by 8.96% and increasing 23.7% year-over-year. Revenues of $76.44 billion grew 18.1% year-over-year, driven by strong demand for cloud and AI offerings. Stock jumped 9%, surpassing $550, with commercial bookings exceeding $100 billion for the first time.

Segmental details show strong growth in Productivity & Business Processes, Intelligent Cloud, and More Personal Computing segments. Revenues exceeded expectations across M365 commercial products and cloud services, LinkedIn, and Dynamics 365. Operating expenses rose 7%, while gross margin percentage increased slightly, showcasing efficiency gains.

Microsoft showcased remarkable growth in Azure, AI, and Copilot platforms. Azure surpassed $75 billion in annual revenues with 34% growth, while Copilot applications reached 100 million monthly active users. Microsoft is leading in AI transformation, with advanced AI models and sophisticated reasoning agents for research and analysis.

Microsoft’s Fabric platform saw exceptional growth, with revenues increasing 55% year-over-year. Azure AI Foundry was launched to manage AI applications and agents at scale, supporting multiple AI models. Database services like Azure Databricks and Cosmos DB showed strong momentum, serving mission-critical workloads at scale.

Operating results saw gross profit increase 16.4% to $52.4 billion, with operating income rising 22.9% to $34.3 billion. Microsoft reported a total cash balance of $94.56 billion and long-term debt of $43.15 billion. Operating margins expanded to 44.9%, driven by better-than-expected revenue growth and efficient operations.

For the fiscal first quarter 2026, Microsoft expects revenue growth in segments like Productivity & Business Processes, Intelligent Cloud, and More Personal Computing. Strong guidance includes revenue growth of 37% in Azure and mid-to-high single-digit growth in Office Commercial and Consumer products. Operating expenses are expected to grow in the coming quarter.

Microsoft’s strong growth in data products, AI platforms, and segmental revenues highlights its leadership in cloud services and AI transformation. With innovative features and steady growth across segments, Microsoft continues to deliver exceptional performance and drive shareholder value through strategic investments and operational efficiency.

Read more at Nasdaq: Microsoft Q4 Earnings & Revenues Beat on Cloud Business Expansion