Tech titan, Microsoft generated $69.6 billion in revenue in the fourth quarter of 2024, reflecting a 12% increase year-on-year.
The feat, which was revealed on Wednesday in a press release on its quarterly earnings, was largely driven by a surge in the adoption of Azure, Microsoft’s cloud service and significant growth in its artificial intelligence (AI) business.
According to Amy Hood, executive vice president and chief financial officer of Microsoft, Azure generated $40.9 billion in the quarter just concluded, representing 58.1% of the overall revenue recorded.
This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” Hood said. We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”
The report also revealed a 17% increase in operating income at $31.7 billion while net income rose by 10% to reach $24.1 billion.
Similarly, Microsoft’s diluted earnings per share climbed to $3.23, indicating a 10% increase compared to the corresponding period in 2023.
Speaking on the growth of the company’s AI segment, Satya Nadella, the CEO of Microsoft said, “We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead. Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”
In a web conference with investors held after the release, Hood said that Microsoft's Azure is forecasted to grow between 31% and 32%, below the 33% Wall Street expects.
The projected figures fell short of investor expectations, causing the tech giant’s shares to drop 4.5% in after-hours trading.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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