Microsoft Reports $23.38B FQ4 Revenue Including $2B In Phone Top Line, Misses With EPS Of $0.55

Microsoft recently reported its fiscal fourth-quarter results. The tech company posted revenue of $23.38 billion for the quarter, with earnings per share (EPS) at $0.55, falling short of analysts’ forecast of $0.60 EPS on a $23.00 billion revenue.

Revenue from Surface reached $409 million, along with a steady operating income of $6.48 billion, representing a commendable growth of 18% in revenue figures.

Another notable metric was a 3% increase in revenue from Windows, primarily due to a surge in sales to corporate customers. Microsoft further recorded $1.99 billion in phone revenue, largely attributable to the acquisition of Nokia’s hardware division, for which it shelled out over $7 billion.

However, the sale of 5.8 million Windows Phone-based Lumia handsets, a unit that achieved a shortfall of $0.08 in EPS and a loss of $692 million, left Microsoft’s overall profit below target due to the expense of the handset investment.

After posting mixed corporate results, Microsoft saw a minor setback in regular trading and a slight decline in after-hours trading. Investors largely viewed this slight decline as the consequence of the fallen profits.

Microsoft’s Devices and Consumer segment achieved revenue of $10 billion. Meanwhile, another key segment, Commercial, witnessed a revenue hike up to $13.48 billion. These figures represented growth rates of 42% and 11%, respectively, with the more significant increase mainly resulting from Nokia acquisition-generated revenue.

The tech giant’s Azure and Office 365 platforms displayed an exceeding growth rate of 100% compared to their previous year performance. Microsoft reported an “annual run rate” of $4.4 billion for its corporate-facing cloud business. On the other hand, Office 365 consumer registrations added an extra 1 million subscribers, ending the quarter with over 5.6 million.

The recent reduction of around 18,000 employees from Microsoft’s workforce is seen as a strategic move to recuperate its margins and achieve profit targets. As the company continues its transition to a cloud and device-focused business model, the missed profit targets might impact its shares.

In the fiscal year, Microsoft accumulated a revenue of $86.63 billion, an operating income of $27.76 billion, and earnings per share of $2.63.

source: Adapted from Alex Wilhelm/TechCrunch

This article was updated in 2025 to reflect current trends and insights.