From CNBC: 2024-07-30 21:05:03

Microsoft reported a strong quarter with revenue up 15% year over year to $64.73 billion, beating estimates. Earnings per share increased nearly 10% to $2.95, above expectations. Despite a miss on Azure growth, the company’s overall performance was solid. Microsoft remains a core holding for long-term growth, backed by strong financials.

Despite Azure revenue growth falling short, Microsoft’s fiscal Q4 results were impressive, with margins outpacing expectations. Azure-related spending signals positive demand for data center chips, benefiting companies like Nvidia and AMD. Management expects an acceleration in Azure growth in fiscal 2025, supporting the outlook for AI-driven offerings and revenue streams.

Quarterly results saw growth across segments, with Office 365 seats up and Dynamics products revenue increasing. While Azure growth was slightly below expectations at 29%, Intelligent Cloud revenue rose nearly 19% year over year. Microsoft’s forecast for fiscal 2025 includes double-digit revenue and operating income growth, despite a slight decline in operating margins.

Microsoft anticipates higher capital expenditures in fiscal 2025 to support demand for its services, with operating expenses managed carefully. Quarterly revenue guidance was mixed, with Intelligent Cloud segment expected to exceed expectations. Microsoft remains optimistic about its product offerings and revenue potential moving forward.



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