Microsoft (MSFT) surged 15.5%, the largest single-day market-value increase in stock market history, after posting better-than-expected Q4 earnings. <\/p>\n
Microsoft has been a laggard for much of the year due to concerns about its AI spending and questions about when it would see a return on its billions in investments. <\/p>\n
But Investors appeared to get the answers they were looking for in the company’s Q4 report and forward guidance. <\/p>\n
Microsoft said Azure growth accelerated to 43% in the period and expects it to hit 45% in the current quarter. Microsoft 365 Copilot seats also rose above 30 million, and Azure revenue passed the $100 billion mark for the first time. <\/p>\n
Overall, Microsoft posted earnings per share of $4.74 on revenue of $90 billion. Analysts were looking for EPS of $4.25 and revenue of $87.7 billion. The company saw EPS of $3.65 and revenue of $76.4 billion in the same quarter last year. <\/p>\n
Microsoft said it spent $41 billion on capital expenditures, including leases, in the quarter, below an anticipated $42 billion. <\/p>\n
The company’s Intelligent Cloud segment saw revenue of $39.3 billion versus expectations of $38.1 billion. <\/p>\n
Microsoft’s Business Productivity and Business Processes segment topped out at $37.8 billion compared to a projected $37.3 billion. <\/p>\n
The company’s More Personal Computing business, which includes sales of Windows, saw revenue of $12.9 billion versus an expected $12.1 billion. <\/p>\n
Remaining performance obligations, or contracts Microsoft must still deliver on, hit $678 billion versus an anticipated $647.6 billion. <\/p>\n
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