Executive Summary
Microsoft reported a robust QQ4 2024, delivering USD 64.73 billion in revenue, up 15.2% year over year and 4.6% quarter over quarter. The company maintained a high gross margin of 69.59% and an operating margin of 43.14%, driving net income of USD 22.04 billion and earnings per share (EPS) of USD 2.96 (diluted USD 2.95). The quarter underscored the company’s durable operating leverage in the Intelligent Cloud and Productivity segments, supported by strong cash flow generation and disciplined capital allocation. Free cash flow reached USD 23.32 billion, with operating cash flow of USD 37.20 billion, enabling meaningful shareholder returns via dividends (USD 5.57 billion) and net share repurchases (USD 4.21 billion). On the balance sheet, Microsoft maintained a solid fortress with total assets of USD 512.16 billion and total stockholders’ equity of USD 268.48 billion, while continuing to operate with a net debt position of USD 48.81 billion despite substantial liquidity (cash and short-term investments of USD 75.53 billion). While the company’s execution remains strong, the market remains sensitive to AI-market positioning, cloud competition, and macro-driven enterprise IT budgeting.
Key Performance Indicators
Key Insights
Revenue: USD 64.73B, YoY +15.2%, QoQ +4.64%; Gross profit: USD 45.04B, margin 69.59%, YoY +14.34%, QoQ +3.90%; Operating income: USD 27.93B, margin 43.14%, YoY +15.14%, QoQ +1.25%; Net income: USD 22.04B, margin 34.04%, YoY +9.74%, QoS EPS: USD 2.96 (diluted USD 2.95), YoY EPS +9.63%, QoQ +0.34%; EBITDA: USD 34.33B, EBITDA margin ~53.0%; Cash flow: Operating cash flow USD 37.20B; Free cash flow USD 23.32B; Capex USD 13.87B; Net change in cash: -USD 1.32B; Cash and cash equivalents USD 18.32B; Sh...
Financial Highlights
Revenue: USD 64.73B, YoY +15.2%, QoQ +4.64%; Gross profit: USD 45.04B, margin 69.59%, YoY +14.34%, QoQ +3.90%; Operating income: USD 27.93B, margin 43.14%, YoY +15.14%, QoQ +1.25%; Net income: USD 22.04B, margin 34.04%, YoY +9.74%, QoS EPS: USD 2.96 (diluted USD 2.95), YoY EPS +9.63%, QoQ +0.34%; EBITDA: USD 34.33B, EBITDA margin ~53.0%; Cash flow: Operating cash flow USD 37.20B; Free cash flow USD 23.32B; Capex USD 13.87B; Net change in cash: -USD 1.32B; Cash and cash equivalents USD 18.32B; Short-term investments USD 57.22B; Total debt USD 67.13B; Net debt USD 48.81B; Current ratio 1.28, Quick ratio 1.27; Dividend payout ~25.3% of net income; FCF per share USD 3.14; Operating cash flow per share USD 5.00; Valuation: P/E ~38x, P/B ~12.5x, P/S ~52x, FCF yield modest given high capex for AI initiatives.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
64.73B |
15.20% |
4.64% |
| Gross Profit |
45.04B |
14.34% |
3.90% |
| Operating Income |
27.93B |
15.14% |
1.25% |
| Net Income |
22.04B |
9.74% |
0.44% |
| EPS |
2.96 |
9.63% |
0.34% |
Key Financial Ratios
operatingProfitMargin
43.1%
operatingCashFlowPerShare
$5
freeCashFlowPerShare
$3.14
dividendPayoutRatio
25.3%
Management Commentary
Transcript data not provided in the current dataset; no management quotes are available in this submission. Typical themes from Microsoft earnings calls include Azure and AI-related investments, productivity/collaboration platform strength (Microsoft 365, Teams, LinkedIn), cloud demand resilience, operating expense discipline, and capital allocation (buybacks/dividends). With no transcript to quote, the highlights focus on reported financials and implied guidance cues from performance.
Transcript not provided in the dataset.
— N/A
Transcript not provided in the dataset.
— N/A
Forward Guidance
Explicit forward-looking targets or guidance from management are not included in the provided data. Based on the QQ4 2024 results and industry dynamics, the plausible outlook centers on continued growth in Intelligent Cloud and Productivity/Business Processes, supported by Azure’s cloud-services demand, AI-enabled product integrations, and annuity-like revenue from Microsoft 365 and LinkedIn. Risks include cloud-price competition (AWS, Google Cloud), macro IT spend cycles, regulatory scrutiny, and ongoing investments in AI/automation that may temper near-term margins. Investors should monitor: (1) Azure revenue growth trajectory and gross margins (scale benefits vs. price competition), (2) mix shifts toward high-margin cloud-related services, (3) operating expense discipline amid AI investments, (4) cadence of AI-enabled product upgrades (Copilot integrations, Viva, Dynamics 365), and (5) forgiveness/adjustments in tax and regulatory environments.