Microsoft (NASDAQ:MSFT) exceeded expectations for earnings and revenue in the fourth quarter of fiscal 2024, yet the company’s cloud growth fell short of forecasts, resulting in a drop in its share price during extended trading on Tuesday.
For the fourth quarter, Microsoft reported revenue of $64.7 billion, marking a 15% increase year-over-year, and surpassing analysts’ estimates from Visible Alpha. Net income for the quarter reached $22 billion, or $2.95 per share, compared to $20.08 billion, or $2.69 per share, the previous year, also exceeding projections.
For the entire fiscal year of 2024, Microsoft’s revenue and net income matched analysts’ expectations at $245.1 billion and $88.1 billion, respectively.
Microsoft CEO Satya Nadella emphasized the company’s focus on meeting critical customer needs across its platforms while aiming to lead in the AI era.
Microsoft’s Cloud Segment
Despite these strong results, Microsoft’s cloud segment’s performance fell short of expectations. Cloud revenue for the fourth quarter was $36.8 billion, up 21% year-over-year, but below the anticipated $37.2 billion. Consequently, Microsoft’s shares dropped more than 5% in after-hours trading to $399.38 as of 4:45 p.m. Tuesday following the earnings release.
Featured Image: Pixabay
