Compared to Estimates, Microsoft (MSFT) Q4 Earnings: A Look at Key Metrics

Core Insights - Microsoft reported $76.44 billion in revenue for the quarter ended June 2025, marking an 18.1% year-over-year increase and an EPS of $3.65 compared to $2.95 a year ago, exceeding Zacks Consensus Estimates [1] Revenue Performance - Overall revenue increased by 18% year-over-year, surpassing the average estimate of 13.9% based on 10 analysts [4] - Intelligent Cloud revenue grew by 26%, exceeding the eight-analyst average estimate of 19.2% [4] - More Personal Computing revenue increased by 9%, compared to the eight-analyst average estimate of -0.3% [4] - Productivity and Business Processes revenue rose by 16%, above the eight-analyst average estimate of 12% [4] Segment Revenue Details - More Personal Computing revenue was reported at $13.45 billion, exceeding the $12.6 billion average estimate, representing a year-over-year decline of 15.4% [4] - Intelligent Cloud revenue reached $29.88 billion, compared to the $28.94 billion estimate, reflecting a 4.8% increase year-over-year [4] - Productivity and Business Processes generated $33.11 billion, surpassing the $32.15 billion estimate, with a significant year-over-year increase of 63% [4] - Dynamics products and cloud services revenue was $2.14 billion, exceeding the $2.05 billion estimate, showing a 24.3% year-over-year increase [4] - Windows and Devices revenue was $4.33 billion, above the $3.88 billion estimate, indicating a year-over-year decline of 33.3% [4] - Search and news advertising revenue was $3.59 billion, slightly above the $3.53 billion estimate, with a year-over-year increase of 13.3% [4] - Enterprise and partner service revenue was $1.99 billion, slightly below the $2 billion estimate, reflecting a year-over-year increase of 6.5% [4] - Server products and cloud services revenue was $27.88 billion, exceeding the $26.76 billion estimate, with a year-over-year increase of 4.7% [4] Stock Performance - Microsoft shares returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for near-term outperformance against the broader market [3]