Microsoft edged above Wall Street's fiscal Q4 targets but Azure cloud computing growth slowed. Microsoft stock fell on the news.
Quarterly Performance
Microsoft reported fiscal Q4 results showing earnings of $2.95 per share on $64.7 billion in sales, slightly beating analysts' expectations. However, Azure's growth rate disappointed.
Azure Growth Slower Than Expected
Azure's revenue growth was reported at 30%, falling short of the anticipated 31.3% and down from 31% in the previous quarter.
Future Projections
Looking ahead, Microsoft forecasts Azure revenue growth of 28% to 29%, which is lower than market expectations during the tech sector's current turbulence.
Impact on Stock
Following the release of earnings, Microsoft stock saw a decline in after-hours trading, reflecting investor concerns over the slower growth rates despite overall earnings exceeding projections.
Capital Expenditures Rising
Microsoft's capital expenditures reached $19 billion in Q4, significantly increasing from $14 billion in the previous quarter, primarily for AI data centers.
Segment Performance Insights
The Intelligent Cloud segment outperformed, with year-over-year revenue growth of 19%. However, overall sales guidance for the coming quarter was less optimistic, with predictions below consensus.
