<div id="readability-page-1"><p>Here's our initial take on <strong>Microsoft</strong>'s <span>(MSFT<span> 0.10%</span>)</span> fiscal 2025 fourth-quarter financial report.</p> <h2>Key Metrics</h2> <div><table> <thead> <tr> <th>Metric</th> <th>Q4 FY24</th> <th>Q4 FY25</th> <th>Change</th> <th>vs. Expectations</th> </tr> </thead> <tbody> <tr> <td>Revenue</td> <td>$64.7 billion</td> <td>$76.4 billion</td> <td>18%</td> <td><span>Beat</span></td> </tr> <tr> <td>Earnings per share</td> <td>$2.95</td> <td>$3.65</td> <td>24%</td> <td><span>Beat</span></td> </tr> <tr> <td>Intelligent Cloud revenue</td> <td>$23.8 billion</td> <td>$29.9 billion</td> <td>26%</td> <td>n/a</td> </tr> <tr> <td>Net cash from operations</td> <td>$37.2 billion</td> <td>$42.6 billion</td> <td>15%</td> <td>n/a</td> </tr> </tbody> </table></div> <h2>Microsoft Quantifies Cloud Impact</h2> <p>Microsoft easily topped expectations in its fiscal fourth quarter, reporting revenue up 18% and earnings per share up 24% year over year. Intelligent Cloud continued to lead the way, up 26% from a year ago, helping to fuel a 15% boost in net cash from operations to $42.6 billion.</p> <p>Gross margin for the quarter came in at 69%.</p> <p>The company also provided a revenue number for its Azure cloud business for the first time, saying that the service surpassed $75 billion in sales for the entire fiscal year. That's up 34% from fiscal 2024.</p> <p>&#34;Cloud and AI is the driving force of business transformation across every industry and sector,&#34; CEO Satya Nadella said in a statement.</p> <p>Intelligent Cloud was the standout, but Microsoft saw growth across its different sectors. Productivity and business processes revenue was up 16% thanks to Microsoft 365 commercial and consumer products, while More Personal Computing jumped by 9% in part thanks to 13% Xbox content and services growth.</p> <p>For the full fiscal year, Microsoft grew revenue by 15% and operating income by 17%.</p> <p>During the quarter, Microsoft returned $9.4 billion to shareholders in the form of dividends and share repurchases. The company ended the period with $94.6 billion in cash and short-term investments on its balance sheet.</p>  <h2>Immediate Market Reaction</h2> <p>Investors were apparently cheering the results. Microsoft shares jumped 6% in after-market trading following the earnings release but ahead of the company's call with shareholders.</p> <h2>What to Watch</h2> <p>It is the start of a new fiscal year for Microsoft, and investors will be eager to hear forecasts about whether this growth rate can continue into fiscal 2026. Of particular interest will be any guidance on capex spending in the new year as Microsoft continues to invest in AI and data centers.</p> <p>Microsoft has a well-diversified business with exposure to both the consumer and commercial customers and both large AI models and personal computer growth. While some of those businesses are vulnerable to economic headwinds and the threats of tariffs, the overall strength of the portfolio was evident in these results.</p> <p>Microsoft and its big-tech rivals are in the early stages of turning their massive investments in cloud and AI into profits, but the results and new details of Azure are a big step in justifying that outsized expenditure. Investors are understandably excited about the company's potential to continue to convert that potential into profits.</p> <h2>Helpful Resources</h2> <ul> <li>Full earnings report</li> <li>Investor relations page</li> <li>Additional coverage</li> </ul>                                                                            </div>

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<p>Microsoft's fiscal Q4 2025 report shows strong growth, with revenue rising 18% to $76.4 billion and earnings per share up 24% to $3.65. Intelligent Cloud revenue surged 26% to $29.9 billion, contributing to a 15% increase in net cash from operations. The Azure cloud business surpassed $75 billion in sales, marking a 34% increase from the previous year. Following the report, Microsoft shares rose 6% in after-market trading. Investors are keen to hear future growth forecasts and capital expenditure plans as the company invests in AI and data centers.</p>

- Microsoft's fiscal 2025 fourth-quarter report showed significant growth, with revenue increasing by 18% to $76.4 billion and earnings per share rising by 24% to $3.65.  
- The Intelligent Cloud segment led this growth, up 26%, contributing to a 15% rise in net cash from operations, while Microsoft returned $9.4 billion to shareholders.  
- Following the earnings release, Microsoft shares surged 6% in after-market trading, with investors keen to hear future growth forecasts and capital expenditure plans for fiscal 2026.

Microsoft Sees Cloud Growth Accelerate