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Key Takeaways
- Microsoft reported better-than-expected revenue and earnings for the fourth quarter of 2024.
- The tech giant said the results were driven by strength in its cloud segment, though Microsoft’s cloud growth missed estimates.
- Shares of Microsoft tumbled in extended trading Tuesday following the company’s earnings release.
Microsoft ( MSFT ) reported better-than-expected earnings and revenue for the fourth quarter of fiscal 2024, but growth in its cloud segment missed estimates, sending shares tumbling in extended trading Tuesday.
The company reported fourth-quarter revenue of $64.7 billion, a 15% jump year-over-year, and above analysts’ estimates compiled by Visible Alpha. Net income came in at $22 billion or $2.95 per share, up from $20.08 billion or $2.69 per share a year earlier, also beating projections.
For the full fiscal year of 2024, revenue and net income were in line with analysts’ expectations at $245.1 billion and $88.1 billion, respectively.
“As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era,” Microsoft CEO Satya Nadella said in a release.
Cloud Revenue Jumps 21%, Short of Expectations
Microsoft said its results in the fourth quarter and the fiscal 2024 year were driven by strength in its cloud segment, though Microsoft’s cloud growth missed expectations.
Microsoft Cloud’s revenue in the fourth quarter was $36.8 billion, up 21% year-over-year, but short of the $37.2 billion that analysts anticipated .
Shares of Microsoft fell over 5% in after-hours trading to $399.38 as of 4:45 p.m. Tuesday following the company’s earnings announcement.