Microsoft logged $18.3 billion in revenue for its productivity and business processes unit, up 10% from a year before, or up 12% in constant currency.

See also: Microsoft bulls are excited as company reveals pricing for AI offering Overall revenue for Microsoft climbed to $56.2 billion from $51.9 billion, whereas analysts had been expecting $55.5 billion. Analysts tracked by FactSet were modeling $2.55 a share. The company generated fiscal fourth-quarter net income of $20.1 billion, or $2.69 a share, compared with $16.7 billion, or $2.23 a share, in the year-earlier period. “We think of that, again, being pretty expansive from a TAM opportunity and we’ll play it out,” he continued, though the company is also up against the “law of large numbers” given the massive scale of its cloud business. The cloud migration is still in the “early innings,” Chief Executive Satya Nadella said on the call, while also highlighting a “new world of AI driving a set of new workloads.” “While we believe the Street was hoping for Azure growth more in the ~28% range, we believe the consumption part of the business held up well,” Evercore ISI analyst Kirk Materne said in a note to clients.įor the September quarter, Microsoft anticipates 25% to 26% in constant-currency Azure growth. The FactSet consensus was for 27% growth in constant currency. Microsoft’s forecast had been for 26% to 27% in constant-currency Azure sales growth, while the company posted 31% constant-currency growth on the metric in the March period. The company said revenue for Azure and other cloud services was up 26%, or 27% in constant currency. The growth rate was 17% on a currency-neutral basis. Revenue for the segment came in at $24.0 billion, while analysts had been anticipating $23.8 billion. Hood’s commentary came as Microsoft posted fiscal fourth-quarter results Tuesday afternoon that showed a 15% jump in revenue for the company’s cloud-computing segment, which it calls Intelligent Cloud. Meanwhile, she expects that Microsoft’s capital expenditures will rise sequentially each quarter “as we scale to meet demand signals.” Microsoft’s AI revenue impacts will thus be weighted toward the second half of the new fiscal year that just began, she continued.

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