Growth amidst layoffs: Microsoft’s Cloud, AI, and LinkedIn growth drive record quarter with revenue at $76.4 billion
As Microsoft closes its fiscal year, surging demand for cloud services, AI tools, and continued momentum at LinkedIn fuel strong revenue and profit gains.
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Microsoft reported fourth-quarter earnings that exceeded expectations, driven by relentless demand for its cloud computing and artificial intelligence services. For the quarter ending June 30, Microsoft posted revenue of $76.4 billion, up 18 percent from a year earlier, and net income of $27.2 billion, a 24 percent increase. Operating income rose to $34.3 billion, and earnings per share hit $3.65, up from $2.95 a year ago.
The company’s fiscal year revenue totaled $281.7 billion, an increase of 15 percent year-over-year, while annual net income reached $101.8 billion, up 16 percent.
“Cloud and AI is the driving force of business transformation across every industry and sector," said Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”
Microsoft’s Intelligent Cloud division led the performance, with revenue climbing 26 percent to $29.9 billion. Revenue from Azure and other cloud services rose 39 percent, underscoring the company’s momentum in AI infrastructure and services. CFO Amy Hood highlighted that Microsoft Cloud alone contributed $46.7 billion in revenue in the quarter, up 27 percent from a year ago.
The Productivity and Business Processes segment, home to Microsoft 365 and LinkedIn, posted $33.1 billion in revenue, up 16 percent. Microsoft 365 Commercial cloud revenue jumped 18 percent, while LinkedIn continued its growth streak, with revenue increasing 9 percent.
The More Personal Computing segment—covering Windows, Xbox, and Bing—generated $13.5 billion, a 9 percent rise, boosted by a 13 percent gain in Xbox content and services and a 21 percent increase in search and advertising revenue, excluding traffic acquisition costs.
The company returned $9.4 billion to shareholders through dividends and stock buybacks during the quarter.
Microsoft’s results highlight how cloud infrastructure and AI are becoming integral to enterprise IT strategy. The Redmond-based giant has spent the past several quarters integrating generative AI into its software products, including its Copilot tools for Microsoft 365, and expanding partnerships in AI with OpenAI and enterprise clients.
