Microsoft Cloud Fuels Record Q4 Growth at 39 Percent

Microsoft closed Q4 of its 2024 fiscal year with stellar results, reporting $76.4 billion in revenue (up 18%) and $27.2 billion in net income (up 24%). Led by a 39% surge in Azure, the company reinforced its cloud dominance amid broader market headwinds.

Azure Powers Record Cloud Growth

Azure revenue jumped 39% year-over-year, and it surpassed $75 billion in annual revenues—a 34% increase. Every region is now "AI-first," equipped with liquid cooling to support high-intensity workloads.

• 39% YoY Azure revenue growth
• AI-first regions and liquid cooling support

Windows and Devices Hold Steady

Windows OEM and devices revenue rose 3%, fueled by PC refresh cycles and Windows 11 upgrades. Though tariffs and consumer inertia persist, enterprise hardware investments ahead of Windows 10 support end offered a tailwind.

• New Surface Pro 12" and Surface Laptop 13" launched

Xbox and Gaming: Content Drives Engagement

Xbox content and services revenue climbed 13%, with Game Pass revenue hitting nearly $5 billion annually. While hardware sales dipped 22%, Microsoft became the top publisher on both Xbox and PlayStation this quarter.

• Cross-platform titles like Forza Horizon 5 soaring on PlayStation

Office, LinkedIn, and Advertising Lift the Bottom Line

Microsoft 365 commercial cloud revenue jumped 18%, aided by Copilot licenses, while consumer plans saw 20% growth. LinkedIn revenue rose 9%, and search ads surged 21% after Bing's AI upgrades.

Despite workforce reductions, Microsoft’s diversified revenue streams and cloud-first push underpin its resilience as it heads into fiscal 2025.