Discover how Microsoft Q4 FY24 earnings are setting new industry standards

Microsoft Corp. has revealed outstanding financial results for the quarter ending June 30, 2024 (Q4 FY24). The company reported revenue of $64.7 billion for the quarter, reflecting a 15% increase compared to the same period last year, or 16% when adjusted for constant currency. Operating income reached $27.9 billion, marking a 15% year-over-year increase (16% in constant currency). Net income for the quarter was $22.0 billion, up 10% from the previous year, or 11% in constant currency. Diluted earnings per share rose to $2.95, a 10% increase (11% in constant currency).

Quarterly Performance Highlights

Satya Nadella, Chairman and Chief Executive Officer of Microsoft Corp., attributed the company’s strong performance to its continued innovation and the trust customers place in Microsoft. Nadella emphasized the company’s commitment to addressing mission-critical needs through its platforms while leading in the artificial intelligence (AI) sector. Amy Hood, Executive Vice President and Chief Financial Officer, highlighted a record quarter for Microsoft Cloud, with revenue reaching $36.8 billion—up 21% year-over-year (22% in constant currency).

Segment Breakdown

Revenue in the Productivity and Business Processes segment was $20.3 billion, showing an 11% increase (12% in constant currency). Notable highlights include a 12% rise in Office Commercial products and cloud services revenue, driven by a 13% increase in Office 365 Commercial revenue. Office Consumer products saw a 3% revenue increase, and Microsoft 365 Consumer subscribers grew to 82.5 million. LinkedIn’s revenue increased by 10%, while Dynamics products and cloud services revenue surged 16%, driven by a 19% increase in Dynamics 365 revenue.

In the Intelligent Cloud segment, Microsoft achieved $28.5 billion in revenue, up 19% year-over-year (20% in constant currency). Server products and cloud services saw a 21% increase in revenue, driven by a 29% rise in Azure and other cloud services revenue.

The More Personal Computing segment reported $15.9 billion in revenue, up 14% (15% in constant currency). Windows revenue increased by 7%, with OEM revenue rising 4% and Commercial products and cloud services revenue up 11% (12% in constant currency). Xbox content and services revenue surged 61%, attributed to the acquisition of Activision. Search and news advertising revenue, excluding traffic acquisition costs, grew by 19%. Devices revenue, however, saw an 11% decrease (9% in constant currency).

Fiscal Year 2024 Overview

For the fiscal year ending June 30, 2024, Microsoft Corp. reported total revenue of $245.1 billion, reflecting a 16% increase (15% in constant currency). Operating income was $109.4 billion, up 24% from the previous year (22% non-GAAP, 21% in constant currency). Net income for the year reached $88.1 billion, a 22% increase (20% non-GAAP). Diluted earnings per share were $11.80, up 22% (20% non-GAAP).

Microsoft returned $8.4 billion to shareholders in the fourth quarter through share repurchases and dividends, demonstrating its commitment to delivering value to investors.

Expert Opinion

The financial results for Microsoft Corp. underscore a strong fiscal year, driven by notable growth across its diverse segments. The significant revenue increases in cloud services and the successful integration of Activision are key contributors to the company’s impressive performance. As Microsoft continues to innovate and expand its offerings, it remains well-positioned to maintain its leadership in the technology sector.