The earnings call highlighted significant growth in Microsoft's cloud services, AI innovations, and strong performance in gaming and LinkedIn. However, there were challenges in the on-premises server business and high capital expenditures, along with some financial losses. The overall sentiment is positive due to the strong revenue growth and technological advancements.

Company Guidance

During the Microsoft Fiscal Year 2025 Fourth Quarter Earnings Conference Call, significant guidance was provided on various financial metrics and strategic initiatives. Microsoft reported $281 billion in annual revenue, marking a 15% increase year-over-year, alongside an operating income of over $128 billion, up 17%. The company's fourth-quarter revenue was reported at $76.4 billion, a year-over-year increase of 18%, with earnings per share rising by 24% to $3.65. Microsoft Cloud revenue grew to $46.7 billion, a 27% increase, with Azure revenue alone growing by 39%. The company also highlighted an annual commercial bookings figure exceeding $100 billion, up 37% year-over-year. Looking forward, Microsoft expects to achieve double-digit revenue and operating income growth in fiscal year 2026, with capital expenditures projected to exceed $30 billion in Q1 due to strong cloud and AI demand. The company remains focused on maintaining operating margins and anticipates an effective tax rate between 19% and 20% for the upcoming fiscal year.

Strong Microsoft Cloud Performance

Microsoft Cloud surpassed $168 billion in annual revenue, up 23%. Azure surpassed $75 billion in annual revenue, up 34%.

Innovations in AI and Data Centers

Opened new data centers across 6 continents and stood up more than 2 gigawatts of new capacity in 12 months. Introduced Microsoft Sovereign Cloud and announced world's first operational deployment of a Level 2 Quantum computer.

Record Fiscal Year and High Growth in Microsoft 365 and Dynamics 365

Delivered over $281 billion in revenue, up 15%. Microsoft 365 Copilot adoption at a faster rate than any other new suite with strong usage intensity and Dynamics 365 revenue increased 23%.

Gaming and LinkedIn Growth

Gaming revenue increased 10%, and Xbox content and services revenue increased 13%. LinkedIn now has 1.2 billion members with video uploads increasing over 20%.

Increased Commercial Bookings and Cloud Gross Margin

Commercial bookings increased 37%, reaching over $100 billion for the first time. Microsoft Cloud gross margin percentage was 68%.

Microsoft (MSFT) Earnings, Revenues Date & History

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MSFT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 28, 2025	2026 (Q1)	3.65 / -	3.3	―	―	―
Jul 30, 2025	2025 (Q4)	3.38 / 3.65	2.95	23.73% (+0.70)
Apr 30, 2025	2025 (Q3)	3.22 / 3.46	2.94	17.69% (+0.52)
Jan 29, 2025	2025 (Q2)	3.12 / 3.23	2.93	10.24% (+0.30)
Oct 30, 2024	2025 (Q1)	3.10 / 3.30	2.99	10.37% (+0.31)
Jul 30, 2024	2024 (Q4)	2.94 / 2.95	2.69	9.67% (+0.26)
Apr 25, 2024	2024 (Q3)	2.83 / 2.94	2.45	20.00% (+0.49)
Jan 30, 2024	2024 (Q2)	2.77 / 2.93	2.32	26.29% (+0.61)
Oct 24, 2023	2024 (Q1)	2.65 / 2.99	2.35	27.23% (+0.64)
Jul 25, 2023	2023 (Q4)	2.55 / 2.69	2.23	20.63% (+0.46)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

MSFT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 30, 2025	$512.40	$532.62	+3.95%
Apr 30, 2025	$393.89	$423.92	+7.62%
Jan 29, 2025	$439.91	$412.72	-6.18%
Oct 30, 2024	$429.31	$403.32	-6.05%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.