Revenue increased 8.3% year-over-year to $56.19 billion, beating the consensus for an increase of $55.47 billion. The cloud business attracted $30.3 billion in FQ4 sales while Intelligent Cloud – the business segment that hosts Azure – saw its sales rise 26% year-over-year, in line with analyst estimates.
At constant currency, revenue increased 10% YoY. On the bottom line, Microsoft topped analyst expectations by $0.13.
“Organizations are asking not only how – but how fast – they can apply this next generation of AI to address the biggest opportunities and challenges they face – safely and responsibly,” said Satya Nadella, chairman and chief executive officer of Microsoft.
"We remain focused on leading the new AI platform shift, helping customers use the Microsoft Cloud to get the most value out of their digital spend, and driving operating leverage," he added.
While Microsoft shares were little changed in the aftermath of the FQ4 earnings report, they fell more than 4% after the company’s CFO said on the call that CapEx is expected to increase over the next several quarters. Microsoft guided for Azure to grow 26% YoY in the September quarter.
“For FY '24, the impact will be weighted toward H2. To support our Microsoft Cloud growth and demand for our AI platform, we will accelerate investment in our cloud infrastructure,” CFO Amy Hood said.
Earlier in July, Senator Tommy Tuberville disclosed the $250,000 - $500,000 sale of Microsoft shares on June 20, when the stock closed at $338.05, around the same levels where MSFT stock was seen on Wednesday morning.