Microsoft reported after the close, delivering a strong fourth-quarter result, sending shares around 3.1% higher after hours.
Revenue reached US$90.0 billion, ahead of expectations, while adjusted EPS of US$4.74 comfortably beat consensus of US$4.25. Azure was the standout, with constant-currency growth of 43% versus 39.6% expected.
Key highlights:
- Microsoft Cloud revenue of US$59.3 billion.
- Intelligent Cloud revenue of US$39.3 billion.
- Azure annual revenue exceeded US$100 billion for the first time.
- Microsoft 365 Commercial Cloud revenue rose 16%.
- Microsoft 365 Copilot reached more than 30 million paid seats.
- Operating income of US$40.6 billion.
The result also included a US$3.2 billion gain on Microsoft’s Anthropic investment, but the underlying numbers were strong even before that benefit.
A high-quality result, led by accelerating Azure growth and improving AI monetisation across the product suite. Microsoft continues to show that its heavy AI investment is translating into both revenue and earnings. We remain positive on the stock.
MM remains bullish MSFT US ~$US390
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