Live: Microsoft (Nasdaq: MSFT) Blows Out Earnings – Azure Is On Fire

Microsoft finally gave Azure numbers today, saying the business recorded $75 billion in revenue for the fiscal year. Here’s what’s amazing: Azure’s run rate is even higher at $86 billion and the business is growing at a 39% pace.

That’s a significant acceleration from two quarters ago, when Azure was growing at a 31% growth rate.

Microsoft Corporation reported strong financial results for Q4 25, with revenue reaching $76.4 billion, an 18% increase year-over-year. The company’s operating income rose to $34.3 billion, a 23% increase, while net income was $27.2 billion, up 24%.

Diluted earnings per share were $3.65, surpassing the estimated EPS. The growth was largely driven by the company’s cloud and AI services, with Azure revenue increasing by 34%. Microsoft Cloud revenue reached $46.7 billion, marking a 27% year-over-year growth.

The company returned $9.4 billion to shareholders through dividends and share repurchases. Microsoft’s fiscal year 2025 results showed a total revenue of $281.7 billion, a 15% increase from the previous year.

For the first time ever Microsoft revealed Azure revenue: it was over $75 billion for the just finished fiscal year.

Here’s what Wall Street expected:

• Revenue: $73.83 billion
• Adjusted EPS: $3.38
• Free Cash Flow: $20.8 billion

And here’s what Microsoft delivered:

• EPS of $3.65
• Revenue of $76.4 billion

Azure grew at 39% ex-currency, that’s way above expectations of 34%.

Shares are immediately up 6%. More details to come.

Get your popcorn ready, because Microsoft earnings should hit very shortly after the 4 p.m. bell. As one final reminder, all you have to do is leave this page open and updates will automatically appear. We expect to provide 5 to 10 updates with news and analysis in the half hour after Microsoft’s report.

If you just went to Google and saw Microsoft shares plummeting late in the day, there’s no need for alarm.

At around 3 p.m. Jerome Powell said there has been no decision made on cutting rates at the September meeting. Immediately after the comment Treasury yields jumped 6 basis points and stocks fell.

Point being: This is a broader market sell-off and nothing related to Microsoft uniquely.

Azure is expected to grow by 34.4%, which is an acceleration from its 33% growth rate in March.

Another area to watch is where the company guides Fiscal 2026 Capital Expenditure plans. Data provider S&P CapitalIQ has the Wall Street consensus at $80.5 billion in capex next year. That would likely put Microsoft below the expected spend of Google, Meta, and Amazon.

However, Microsoft has pulled back on some of its more ambitious plans in the wake of OpenAI partnering more closely with Oracle. 

The announcement of Q2 GDP figures has shaped most the morning’s trading, but as a reminder we could see some volatility before Microsoft’s earnings when Jerome Powell holds a press conference at 2:30.

Betting markets currently place 99% odds that there will be no rate change today, but any commentary from Powell about the Federal Reserve’s outlook for the second half of the year could move markets.

So, if you see Microsoft’s stock moving before earnings, it’s likely less news about Microsft itself and instead related to Powell’s press conference.

Jefferies issued a note on Microsoft on July 15th with analyst Brent Thill saying he’s “very positive” on Microsoft. Thill cited a survey that indicates Copilot could see $11 billion in calendar 2026 revenue.

Jefferies maintains a $600 price target on Microsoft.

The Nasdaq is seeing relatively strong gains of .45% today after GDP growth came in at a surprising 3% rate in Q2. However, Microsoft is slightly trailing the index before earnings.

Shares are up .2% as of 10:50 a.m. ET. NVIDIA leads Magnificent 7 stocks with a 1.7% gain.

Now that we’ve previewed what Microsoft reported last quarter, let’s look ahead to what Wall Street is expecting tonight.

Wall Street Fiscal Q4 Consensus For Microsoft

• Revenue: $73.83 billion
• Adjusted EPS: $3.38
• Free Cash Flow: $20.8 billion

And looking ahead to guidance for next quarter:

• Revenue: $74.2 billion
• Adjusted EPS: $3.54
• Free Cash Flow: $24.1 billion

Beyond these figures, the number one figure Wall Street will be watching is Azure growth rates. Google just reported above-consensus growth for its cloud unit, so expectations for Microsoft will be for a solid beat from Azure.