Microsoft Posts 31% Jump in June-Quarter Net Profit, Revenue Rises 18% YoY

Microsoft announced robust financial results for its fiscal fourth quarter ended June 30, showcasing a significant 31% year-over-year jump in net profit to $35.8 billion. Revenue also saw a substantial 18% increase, reaching $90 billion, driven primarily by the sustained demand for its cloud computing and artificial intelligence services.

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When adjusting for these items, we exceeded expectations across revenue, operating income, and diluted earnings per share.

The technology giant's operating income climbed 18% to $40.6 billion. Diluted earnings per share (EPS) stood at $4.81 on a GAAP basis, marking a 32% increase from the previous year. Excluding certain investments, such as those in OpenAI, Microsoft's non-GAAP net income rose 22% to $35.3 billion, with diluted EPS at $4.74, up 23%.

Several one-time factors positively impacted the quarter's performance, including a $3.2 billion gain from its investment in Anthropic and lower-than-expected expenses from its Voluntary Retirement Program. These benefits were partially offset by severance costs and impairment charges within its Xbox business. "When adjusting for these items, we exceeded expectations across revenue, operating income, and diluted earnings per share," the company stated.

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We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results.

Microsoft Chairman and CEO Satya Nadella highlighted the company's role in helping customers achieve business value through AI. He noted that Azure's revenue exceeded $100 billion for the first time this year, and Microsoft 365 Copilot surpassed 30 million paid seats, indicating strong customer adoption of AI solutions. Chief Financial Officer Amy Hood added that the company concluded the fiscal year strongly, with Microsoft Cloud revenue reaching $59.3 billion, a 27% increase year-over-year.

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We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of USD 59.3 billion, up 27 per cent year-over-year.