Microsoft (MSFT) reported its fourth quarter earnings on Wednesday, beating Wall Street’s estimates on the top and bottom lines as its Azure service topped $100 billion in revenue for the first time.
Microsoft stock climbed more than 3% following the report.
Overall, Microsoft posted earnings per share of $4.74 on revenue of $90 billion. Analysts were looking for EPS of $4.25 and revenue of $87.7 billion. The company saw EPS of $3.65 and revenue of $76.4 billion in the same quarter last year.
Microsoft said it spent $41 billion on capital expenditures, including leases, in the quarter, below an anticipated $42 billion.
The company’s Intelligent Cloud segment saw revenue of $39.3 billion versus expectations of $38.1 billion.
Microsoft’s Business Productivity and Business Processes segment topped out at $37.8 billion compared to a projected $37.3 billion.
The company’s More Personal Computing business, which includes sales of Windows, saw revenue of $12.9 billion versus an expected $12.1 billion.
Remaining performance obligations, or contracts Microsoft must still deliver on, hit $678 billion versus an anticipated $647.6 billion.
Microsoft, like much of the tech industry, has been beset by concerns about aggressive capital expenditure and its impact on the company’s free cash flow, as well as whether those investments are paying off in terms of improved revenue.
Last week, Google parent Alphabet said it plans to spend between $195 billion and $205 billion on capex for the year, up from its prior estimate of $180 billion to $190 billion and well ahead of analysts’ expectations of $186.4 billion. That sent Alphabet stock tumbling more than 6% on the day.
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