Microsoft CEO Satya Nadella speaks at an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, on April 4, 2025.
Microsoft shares jumped 9% in extended trading on Wednesday after the company reported better-than-expected earnings and revenue for the fiscal fourth quarter.
Here's how the company performed in comparison with LSEG consensus:
Earnings per share: $3.65 vs. $3.37 expected
$3.65 vs. $3.37 expected Revenue: $76.44 billion vs. $73.81 billion expected
Microsoft's finance chief, Amy Hood, called for $74.7 billion to $75.8 billion in fiscal first-quarter revenue. The middle of the range, at $75.25 billion, surpassed LSEG's $74.09 billion consensus. The company sees 37% Azure growth at constant currency. StreetAccount's consensus was 33.7%.
The company's fiscal first-quarter implied operating margin of 46.6% is wider than the 45.7% consensus among analysts surveyed by StreetAccount. Hood's forecast included over $30 billion in capital expenditures.
Hood said Microsoft sees over $30 billion in fiscal first quarter capital expenditures and assets acquired through finance leases, which would work out to annual growth above 50%. Analysts surveyed by Visible Alpha had expected $24.23 billion.
Capital expenditures will grow in the new fiscal year, but more slowly than in the 2025 fiscal year that ended in June, Hood said.
The company continues to face data center infrastructure shortages as it ramps up capacity for running artificial intelligence models.
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