Microsoft Reports Impressive Q4 Earnings with 24% YoY EPS Growth

Microsoft's Q4 earnings exceeded expectations, with EPS of $3.65, up 24% YoY, and revenue of $76.4 billion, up 18% YoY. CEO Satya Nadella attributed the growth to investments in AI and cloud infrastructure. The company's cloud business, Azure, surpassed $75 billion in annual revenue, up 34%. For FY25, Microsoft reported a 15% YoY jump in revenue to $281.7 billion and an EPS of $13.64, up 16%.

Microsoft Corp. (MSFT) reported strong fiscal fourth-quarter (Q4) results, with earnings per share (EPS) of $3.65, up 24% year-over-year (YoY), and revenue of $76.4 billion, up 18% YoY. CEO Satya Nadella attributed the growth to significant investments in artificial intelligence (AI) and cloud infrastructure. The company's cloud business, Azure, surpassed $75 billion in annual revenue, up 34% [1].

For the fiscal year 2025 (FY25), Microsoft reported a 15% YoY jump in revenue to $281.7 billion and an EPS of $13.64, up 16%. The company's cloud and AI segment, which includes Azure, contributed significantly to this growth. Revenue from the Intelligent Cloud unit, which includes Azure, increased 26% to $29.88 billion, surpassing analysts' expectations [2].

Microsoft's cloud and AI investments have been a key driver of its recent performance. The company's cloud business, Azure, has seen rapid growth, with revenue exceeding $75 billion in FY25, up 34%. This growth was driven by increased adoption across various industries, including healthcare, finance, and retail, which are leveraging Microsoft's cloud services for digital transformation and innovation [3].

In addition to its cloud business, Microsoft's productivity and business processes segment also performed well. Revenue in this segment increased 16% to $33.1 billion, driven by growth in Microsoft 365 Commercial cloud services. Microsoft 365, which includes productivity tools like Word, Excel, and PowerPoint, saw an 18% increase in revenue, highlighting the continued demand for productivity solutions [3].

The company's More Personal Computing segment, which includes Windows and Xbox, also saw growth, with revenue increasing 9% to $13.5 billion. This segment benefited from strong sales of Windows OEM and devices, as well as growth in Xbox content and services [3].

Microsoft's strong performance in Q4 and FY25 reflects the company's strategic focus on cloud and AI. The company's investments in these areas have positioned it well to capitalize on the growing demand for digital transformation and innovation. As the company continues to invest in these areas, it is well-positioned to maintain its growth trajectory in the coming quarters and years.

References:
[1] https://www.cnbc.com/2025/07/30/microsoft-msft-q4-earnings-report-2025.html
[2] https://www.thestreet.com/crypto/markets/strong-earnings-from-meta-microsoft-but-misses-1-critical-metric-
[3] https://news.microsoft.com/source/2025/07/30/microsoft-cloud-and-ai-strength-fuels-fourth-quarter-results/