Microsoft has reported a 12% year-on-year increase in revenue, generating $69.6 billion in the fourth quarter of 2024. The tech giant’s impressive earnings were largely driven by a surge in the adoption of Azure, its cloud service, and significant growth in its artificial intelligence (AI) business.
According to Amy Hood, Microsoft’s executive vice president and chief financial officer, Azure generated $40.9 billion in the quarter, representing 58.1% of the company’s overall revenue.
“This quarter, Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” Hood said. “We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”
The company’s operating income rose by 17% to $31.7 billion, while net income increased by 10% to $24.1 billion. Microsoft’s diluted earnings per share climbed to $3.23, indicating a 10% increase compared to the corresponding period in 2023.
Microsoft’s AI business has also seen significant growth, with CEO Satya Nadella stating that the company has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.
“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,” Nadella said.
However, Microsoft’s shares dropped 4.5% in after-hours trading, as investors expressed concerns over the company’s spending, AI revenue, and competition from cheaper AI models from China.
Despite this, LinkedIn Premium subscriptions reached record-breaking levels, rising by 9% to $2 billion, reflecting the company’s efforts to enhance paid tiers and attract users.
