Microsoft Cloud Miss Overshadows Earnings Beat

Microsoft (MSFT) reported better-than-expected net and gross for nan 4th fourth of fiscal 2024, but maturation successful its unreality conception missed estimates, sending shares tumbling successful extended trading Tuesday.

The institution reported fourth-quarter gross of $64.7 billion, a 15% jump year-over-year, and supra analysts' estimates compiled by Visible Alpha. Net income came successful astatine $22 cardinal aliases $2.95 per share, up from $20.08 cardinal aliases $2.69 per stock a twelvemonth earlier, besides beating projections.

For nan afloat fiscal twelvemonth of 2024, gross and nett income were successful statement pinch analysts' expectations astatine $245.1 cardinal and $88.1 billion, respectively.

"As a level company, we are focused connected gathering nan mission-critical needs of our customers crossed our at-scale platforms today, while besides ensuring we lead nan AI era," Microsoft CEO Satya Nadella said successful a release.

Cloud Revenue Jumps 21%, Short of Expectations

Microsoft said its results successful nan 4th fourth and nan fiscal 2024 twelvemonth were driven by spot successful its unreality segment, though Microsoft's unreality maturation missed expectations.

Microsoft Cloud's gross successful nan 4th fourth was $36.8 billion, up 21% year-over-year, but short of nan $37.2 cardinal that analysts anticipated.

Shares of Microsoft fell complete 5% successful after-hours trading to $399.38 arsenic of 4:45 p.m. Tuesday pursuing nan company's net announcement.