Microsoft (MSFT) Generated its tax results in the fourth quarter Wednesday, beating analysts’ expectations on the upper and lower lines on the strength of his cloud income.
Microsoft Stock has climbed more than 6% to news.
“Cloud and AI are the engine of business transformation through each industry and sector,” said Satya Nadella, CEO of Microsoft, in a press release.
“We are innovating through the technological battery to help customers adapt and develop in this new era, and this year Azure exceeded $ 75 billion in revenues, up 34%, driven by all workloads.”
For the quarter, Microsoft saw a profit adjusted by Action (BPA) of $ 3.65 on a turnover of $ 76.4 billion. Wall Street provided for an adjusted BPA of $ 3.37 and a turnover of $ 73.89 billion, according to estimates of the Bloomberg analyst’s consensus. The company saw an adjusted BPA of $ 2.95 and a turnover of $ 64.72 billion during the same period last year.
Intelligent Cloud Segment returned, which includes Microsoft Azure activities, exceeded $ 29.8 billion. Analysts sought $ 29.09 billion. However, the company claims that demand continues to go beyond capacity.
Windows manufacturer’s profits occur a week after Google (Googl, Googl) has published better results that are scheduled in the second quarter on the force of its Cloud income growth, sending higher actions. The company also said that it paid an additional $ 10 billion in its AI construction, which brings the total of $ 75 billion to $ 85 billion.
But investors were not disrupted by the increase and rather focused on the comment of the CEO Sundar Pichai indicating that the search volume increased by two figures during the quarter.
Despite Microsoft’s solid growth, Wedbush analyst Dan Ives wrote in a recent investor note that company AI investments will really take off during the 2026 fiscal year.
“While cases of use of AI are clearly built in FY25, [it’s] Clear Fy26 for Microsoft remains the real year of inflection of AI growth as the CIO lines are built for deployments behind the velvet strings in Redmond, “wrote Ives.
Brad Boffa Global Research Suns, said during this time, the co -pilot software powered by Microsoft could serve as next growth catalyst.
Microsoft is an AI leader thanks to his first investments in the Catgpt Openai Creator (OPAI.PVT). But companies disagree on the plans of Openai to transform its for -profit arm into a public service company and to the quantity of equity that Microsoft will obtain in the new company.
Without Microsoft climbing on board, Openai could lose $ 20 billion in investments, harming its future growth prospects.
Send an email to Daniel Howley to [email protected]. Follow him on X / Twitter at @Danielhowley.
