Software giant Microsoft Corp. (MSFT) Tuesday reported fourth-quarter results, with both earnings and revenues missing Wall Street estimates, as cloud business growth slows down.
Net income for the fourth quarter was $16.74 billion or $2.23 per share, up from $16.46 billion or $2.17 per share in the same quarter last year. Twenty-nine analysts polled by Thomson Reuters expected earnings of $2.30 per share for the quarter.
Microsoft said its revenues grew 12% to $51.87 billion from $46.15 billion last year. Analysts had a consensus revenue estimate of $52.47 billion.
"In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year," said CFO Amy Hood.
The revenue from intelligent cloud services increased to $20.9 billion in the quarter, up 20% from last year, driven by Azure and other cloud services revenue growth of 40%. However, Azure and other cloud services revenues has slowed down compared to previous quarter's 46% growth.
Revenue in Productivity and Business Processes increased 13% to $16.6 billion, with office commercial products and cloud services revenue up 9 percent driven by Office 365 commercial revenue growth of 15 percent.
Revenues in More Personal Computing segment, which includes Windows operating system, increased 2 percent to $14.4 billion.
MSFT closed Tuesday's trading at $251.90, down $6.93 or 2.68%, on the Nasdaq. The stock further slipped $3.13 or 1.24% in the after-hours trading.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.