Microsoft Reports Better-Than-Expected Earnings, Shares Surge 6%

REDMOND, Wash. — Microsoft Corp. shares jumped 6% in extended trading on Wednesday following an announcement of better-than-expected earnings and revenue for the fiscal fourth quarter.

The company reported that its revenue grew by 18% year over year in the fourth quarter, which concluded on June 30. The revenue came in at $29.88 billion for its Intelligent Cloud unit, which includes Azure, surpassing StreetAccount’s consensus of $28.92 billion.

For the first time, Microsoft detailed the scale of its Azure business, disclosing that revenue from Azure and other cloud services exceeded $75 billion for the fiscal year 2025, marking a 34% increase.

Last week, Alphabet announced an increase in its 2025 capital spending forecast by $10 billion to $85 billion. During the quarter, Microsoft also celebrated its 50th anniversary, laid off more than 1,000 employees, and introduced a new tool to help with coding tasks through its Copilot assistant.

Additonally, the company stated that LinkedIn chief Ryan Roslansky will now oversee Office productivity applications.

As of Wednesday’s close, Microsoft shares were up 21% this year, while the S&P 500 index had seen an increase of about 8%. Microsoft executives will discuss these results with analysts on a conference call scheduled for 5:30 p.m. ET.