Zhi Tong Cai Jing·2025-07-31 13:51Core Viewpoint - Microsoft has achieved a historic milestone by surpassing a market capitalization of $4 trillion, becoming the second company to do so after Nvidia, following a strong performance in its fiscal Q4 2025 earnings report [1] Financial Performance - Microsoft reported Q4 revenue of $76.44 billion, exceeding market expectations of $73.83 billion, with a year-over-year growth of 18%, marking the fastest growth rate in nearly three years [1] - Earnings per share reached $3.65, surpassing the expected $3.38, while net profit increased from $22.04 billion in the same quarter last year to $27.23 billion [1] Future Outlook - For the upcoming fiscal Q1, Microsoft projects revenue between $74.7 billion and $75.8 billion, with a midpoint of $75.25 billion, which exceeds the anticipated $74.09 billion [1] - The company expects an operating profit margin of 46.6% for Q1, higher than the 45.7% predicted by analysts [1] Business Growth Drivers - The significant revenue growth of 18% is primarily attributed to a 39% increase in Azure business revenue, demonstrating strong double-digit growth despite a large revenue base [1] - Operational leverage has contributed to an increase in profit margins, which is a key reason for the over 20% growth in earnings per share compared to the previous year [1] Capital Expenditure and Cash Flow - Despite capital expenditures reaching $17 billion in the last quarter, Microsoft continues to maintain attractive free cash flow [1]