Microsoft Beats Q4 Earnings Expectations as Azure Growth Hits 51%
Microsoft reports strong fiscal Q4 earnings with $46.2 billion in revenue, driven by a 51% surge in Azure growth. Despite beating analyst expectations, the company's shares fall slightly in after-hours trading.
Microsoft reports fiscal Q4 2021 earnings of $46.2 billion in revenue and $16.5 billion in net income, easily beating analyst expectations of $44.1 billion in revenue. The tech giant sees revenue grow by 21% compared to the same quarter last year, while net income expands by an impressive 47%. Despite these strong results, Microsoft shares fall around 3% in after-hours trading as the company reportedly misses unofficial whisper numbers.
Azure leads the charge for Microsoft with 51% revenue growth, marking the cloud platform's best performance since early 2020. This impressive cloud growth helps drive the Intelligent Cloud division to a 30% overall revenue increase. Other standout performers include LinkedIn with 46% growth and Dynamics 365 with 49% growth, showing strong momentum across the company's enterprise software offerings.
Not all segments experience the same success, as Windows OEM revenue slips by 3% and Surface hardware revenue falls by a steep 20%. Office Consumer revenue also shows a more modest 18% expansion. However, these weaker spots do not derail the company's overall profitability, with Microsoft spending a massive $10.4 billion on share buybacks and dividends during the quarter.