Ge Long Hui·2025-07-31 01:28Core Insights - Microsoft reported better-than-expected earnings and revenue for Q4, leading to a 7% increase in stock price after hours [2] - Earnings per share were $3.65, exceeding the expected $3.37, while revenue reached $76.44 billion, surpassing the forecast of $73.81 billion [2] - Revenue grew 18% year-over-year, marking the fastest growth in over three years, with net income rising from $22.04 billion to $27.23 billion [2] Cloud Business Performance - The Intelligent Cloud segment, which includes Azure, generated $29.88 billion in revenue, a year-over-year increase of approximately 26%, exceeding the consensus estimate of $28.92 billion [2] - Azure revenue growth was reported at 39% for the quarter, outperforming analyst expectations of 34.4% and 35.3% [3] Productivity and Business Processes - The Productivity and Business Processes segment, which includes Office and LinkedIn, achieved revenue of $33.11 billion, surpassing the consensus estimate of $32.12 billion [4] - The adoption of Microsoft 365 Copilot has contributed to an increase in revenue per user for Microsoft 365 commercial cloud products [4] Personal Computing Segment - The More Personal Computing segment, which encompasses Windows, search advertising, devices, and video games, reported total revenue of $13.45 billion, a 9% year-over-year increase, exceeding the expected $12.68 billion [4] - Device sales and Windows OS licensing to manufacturers grew by 3%, with Gartner estimating a 4.4% increase in PC shipments for the quarter [4] Capital Expenditures and Investments - Microsoft’s capital expenditures and assets acquired through financing leases reached $24.2 billion, a 27% increase year-over-year [4] - The company is investing heavily in data centers equipped with advanced chips for AI model development and handling larger workloads [4] Stock Performance and Market Capitalization - Microsoft’s stock has risen 22% year-to-date, nearing historical highs, while the S&P 500 index has increased by approximately 8% [6] - The stock price surpassed $550 in after-hours trading, bringing the market capitalization to around $4.1 trillion, making it the second company to exceed a $4 trillion valuation after Nvidia [6]