Microsoft Exceeds Revenue Expectations in Q4 Earnings

Microsoft exceeded analyst revenue expectations in its fiscal fourth-quarter results announced on Wednesday. The company reported a revenue of $76.4 billion, up 18% from the same period last year, surpassing analyst forecasts of $73.8 billion. Net income rose to $27.2 billion, a 24% increase from the previous year, with earnings per share at $3.65, higher than the expected $3.38 per share.

For the first time, Microsoft disclosed revenue from Azure, its cloud computing platform, which generated over $75 billion in the 2025 fiscal year. Following the announcement, Microsoft's stock surged by 7% in after-hours trading, closing at $513.24 on Wednesday.

Meta also reported increased revenue on Wednesday, leading to a 9.7% rise in its shares during after-hours trading.

In its fourth quarter, Microsoft experienced further growth in artificial intelligence (AI) as it expanded its cloud services and CoPilot AI assistant. The company plans to invest $80 billion in AI data centers for the 2025 fiscal year to meet the growing demand for AI. Despite these investments, Microsoft reduced its workforce by laying off approximately 6,000 employees, representing a 3% reduction across various teams and locations.