Billions have been added to Microsoft's market cap as the tech giant reported US$76.4 billion in Q4 FY25 revenue - marking an 18% year-over-year increase fueled by explosive growth in Azure cloud services and artificial intelligence (AI) integrations.
In a nearly $3 billion beat, the U.S. software behemoth exceeded analyst expectations of $73.81 billion, underscoring its dominance in the tech sector amid accelerating AI adoption.
The Intelligent Cloud segment, which includes its flagship Azure platform, generated $29.9 billion - up 26% from the previous year.
Azure itself expanded by 39%, significantly outpacing competitors like Amazon Web Services, which reported 19% growth in its latest quarterly.
- Productivity and Business Processes, including Office 365, contributed $33.1 billion with 16% growth.
- More Personal Computing, featuring Windows and Xbox, added $13.5 billion, reflecting a 9% rise driven by gaming acquisitions.
- Net income reached $27.2 billion, or $3.65 per share, beating forecasts despite heavy AI infrastructure investments.
In the broader cloud computing market, projected to reach $1.6 trillion by 2030, Microsoft holds 20-25% share, trailing AWS at 31%; but is gaining ground through AI innovations.
Its Azure's AI revenue surged 175% - ahead of Google Cloud's 11% market share in generative AI applications.
Shares in the software giant climbed 9% post-earnings and have settled up around 5% to trade at $515 per share at the time of writing.
