Microsoft Reports $69.6 Billion Revenue for Q4 2024

By Bobby Samwell • Thursday, January 30 06:26 • Permanent Link

Microsoft Corp. has reported strong financial results for the quarter ended December 31, 2024, with revenue reaching $69.6 billion, marking a 12% increase compared to the corresponding period of the previous fiscal year. Operating income also saw a significant rise of 17%, reaching $31.7 billion, or a 16% increase in constant currency. The company's net income increased by 10% to $24.1 billion, with diluted earnings per share also rising by 10% to $3.23.

Key highlights from the company's business segments include a 14% increase in revenue in the Productivity and Business Processes segment, reaching $29.4 billion. This growth was driven by a 15% increase in Microsoft 365 commercial products and cloud services revenue, as well as a 8% increase in Microsoft 365 consumer products and cloud services revenue. Additionally, LinkedIn revenue increased by 9%, while Dynamics products and cloud services revenue saw a 15% increase.

In the Intelligent Cloud segment, revenue reached $25.5 billion, representing a substantial 19% increase. This growth was primarily fueled by a 21% increase in server products and cloud services revenue, driven by a remarkable 31% growth in Azure and other cloud services revenue.

On the other hand, revenue in the More Personal Computing segment remained relatively unchanged at $14.7 billion. However, there were notable increases in Windows OEM and devices revenue (4% increase) and Xbox content and services revenue (2% increase). Notably, search and news advertising revenue, excluding traffic acquisition costs, soared by 21%.

In terms of shareholder returns, Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases during the second quarter of fiscal year 2025.

These figures reflect Microsoft's commitment to innovation across its tech stack and its dedication to helping customers leverage the full potential of AI. The company's AI business has achieved an annual revenue run rate of $13 billion, marking a remarkable 175% increase year-over-year. Furthermore, Microsoft's cloud revenue surged by 21% year-over-year, reaching $40.9 billion.

The market has reacted to these announcements by moving the company's shares -1.1% to a price of $442.33. If you want to know more, read the company's complete 8-K report here.

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