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Key Points
EPS rose to $3.65 in Q4 FY2025, beating analyst expectations and rising 24% compared to the prior-year period.
Revenue reached $76.4 billion, coming in 3.4% above estimates, with strong gains in cloud and AI offerings.
Microsoft Cloud and Azure growth drove results.
Microsoft (NASDAQ:MSFT), a global leader in software, cloud services, and artificial intelligence (AI), posted fiscal 2025 fourth-quarter earnings on Wednesday, July 30, that topped analysts' consensus expectations. Earnings per share of $3.65 and revenue of $76.4 billion beat analyst estimates of $3.37 and $73.9 billion, respectively. Operating income and net income also rose over 20% year over year, highlighted by outsized expansion in AI and cloud services that was accompanied by substantial capital investment to maintain the company’s competitive edge.
| Metric | Q4 2025 | Q4 2025 Estimate | Q4 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $3.65 | $3.37 | $2.95 | 24% |
| Revenue | $76.4 billion | $73.9 billion | $64.7 billion | 18% |
| Operating income | $34.3 billion | $27.9 billion | 23% | |
| Net income | $27.2 billion | $22.0 billion | 24% | |
| Productivity and Business Processes revenue | $33.1 billion | $28.6 billion | 16% | |
| Intelligent Cloud revenue | $29.9 billion | $23.8 billion | 26% |
Source: Microsoft. Note: Analysts' consensus estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Microsoft operates at the intersection of productivity software, cloud infrastructure, AI, gaming, and business solutions. It sells everything from Windows operating systems for personal computers and Xbox gaming consoles to large-scale cloud computing via its Azure division, and productivity solutions such as...