Microsoft After-Hours Earnings Beat Street Estimates

Q4 Revenue and EPS Surpass Expectations

Microsoft Corporation (MSFT) reported better-than-expected financial results for its fiscal fourth quarter, which ended June 30, 2023. The software giant posted revenue of $51.9 billion, a 12% increase year over year and beating analysts' estimates of $50.9 billion. Earnings per share (EPS) came in at $2.23, exceeding the consensus estimate of $2.19.

Strong Performance Across Businesses

Microsoft attributed its strong performance to continued growth in its cloud computing, productivity, and gaming segments. Azure, Microsoft's cloud computing platform, saw revenue jump 40% year over year, driven by demand for its compute, storage, and database services. The productivity segment, which includes the Microsoft Office suite, also performed well, with revenue increasing 15%. Xbox gaming revenue grew 8%, supported by the launch of new games and the expansion of its Game Pass subscription service.

Positive Outlook

Microsoft's management expressed optimism about the company's future prospects. CEO Satya Nadella highlighted the company's focus on innovation and its commitment to delivering value to customers. The company also announced a new partnership with Adobe to integrate Adobe's Experience Cloud with Microsoft's cloud services.

The positive earnings report pushed Microsoft's stock price up in after-hours trading, indicating investor confidence in the company's long-term growth prospects.