Microsoft's stock pops 7% on earnings beat as Azure annual revenue tops $75 billion

• Microsoft reported a revenue jump of 18% from a year earlier.
• The company reported revenue from Azure and cloud services for the first time, with sales exceeding $75 billion for fiscal 2025.
• The stock, which is trading near a record, popped in extended trading

Microsoft shares jumped 7% 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
• Revenue:$76.44 billion vs. $73.81 billion expected

Microsoft's revenue increased 18% in the fiscal fourth quarter ending June 30, up from $64.7 billion a year earlier, according to a statement. Net income increased to $27.23 billion from $22.04 billion a year ago.

The company's Intelligent Cloud unit that includes the Azure cloud produced $29.88 billion in revenue, up about 26% and more than StreetAccount's consensus of $28.92 billion.

For the first time, Microsoft disclosed the scale of its Azure business in dollars. For the 2025 fiscal year, revenue from Azure and other cloud services exceeded $75 billion, up 34%.

During the fiscal fourth quarter, revenue from Azure grew 39%. Analysts polled by StreetAccount and CNBC had anticipated 34.4% and 35.3% Azure growth, respectively.

The company's Productivity and Business Processes segment, which is home to Office productivity software and LinkedIn, delivered $33.11 billion in revenue. The sum was up about 16% and above the $32.12 billion consensus among analysts polled by StreetAccount.

The More Personal Computing unit, which encompasses Windows, search advertising, devices and video games, totaled $13.45 billion. The number was up 9% and higher than StreetAccount's $12.68B billion consensus.

Microsoft said sales of devices and of Windows operating licenses to device makers increased 3%. Gartner, a company that researches the technology industry, estimated that PC shipments went up 4.4% in the quarter.

Last week Alphabet, the parent company of Google, bumped up its 2025 capital spending forecast by $10 billion to $85 billion.

During the quarter, Microsoft celebrated its 50th anniversary, laid off more than 6,000 people and introduced a GitHub feature for assigning coding tasks to the Copilot assistant. The company also said LinkedIn chief Ryan Roslansky would take on added responsibility running Office productivity applications.

Microsoft said it had $1.71 billion in other expense during the quarter. That includes recognized losses on equity method investments such as OpenAI. Other expense in the prior quarter was $623 million.

As of Wednesday's close, Microsoft shares were up 22% for the year and trading near a record, while the S&P 500 index had gained about 8%.

Executives will discuss the results with analysts on a conference call starting at 5:30 p.m. ET.