Microsoft (NASDAQ:MSFT) reported stronger-than-anticipated earnings and revenue for the fourth quarter of fiscal 2024. Despite this, the company’s cloud segment’s growth missed estimates, leading to a decline in shares during extended trading on Tuesday. The tech giant’s fourth-quarter revenue reached $64.7 billion, marking a 15% increase from the previous year and surpassing analysts’ predictions from Visible Alpha. Net income was reported at $22 billion or $2.95 per share, up from $20.08 billion or $2.69 per share a year earlier, also exceeding projections.
For the full fiscal year 2024, Microsoft’s revenue and net income aligned with analysts’ forecasts at $245.1 billion and $88.1 billion, respectively.
Microsoft CEO Satya Nadella highlighted the company’s dual focus on meeting current platform needs while leading in the AI sector.
Cloud Revenue Rises 21%, Misses Forecasts
The results for Q4 and the full fiscal year were bolstered by strength in the cloud segment, yet Microsoft’s cloud revenue growth fell short of expectations. Cloud revenue for the fourth quarter was $36.8 billion, an increase of 21% year-over-year, but below the $37.2 billion anticipated by analysts.
Following the earnings release, Microsoft’s shares fell over 5% in after-hours trading, reaching $399.38 as of 4:45 p.m. Tuesday.
Featured Image: Unsplash
Author Faith Yakubu 
