Microsoft reported a robust QQ4 2024 with revenue of $64.73 billion, up 15.2% year-over-year and 4.6% quarter-over-quarter. Gross profit reached $45.04 billion, delivering a gross margin of 69.6%, while operating income was $27.93 billion for an operating margin of 43.1%. Net income totaled $22.04 billion and diluted earnings per share were $2.95-$2.96, underscoring durable profitability even as the company continues investing in AI and cloud capabilities.
From a cash-generation perspective, operating cash flow was $37.20 billion and free cash flow was $23.32 billion, supporting a constructive capital allocation framework that included stock repurchases and dividends. The balance sheet remained extraordinarily strong, with total assets of $512.16 billion and a net cash position of approximately $48.8 billion, reflecting substantial liquidity and financial flexibility. The company also maintained disciplined leverage, with a debt-to-capitalization around 0.267 and an interest-coverage ratio near 39.8x, highlighting resilience in a high-dollar-purchase technology cycle.
Looking ahead, Microsoft appears positioned to sustain growth through its three-pillar mix: Intelligent Cloud (Azure, GitHub, and Nuance), Productivity and Business Processes, and More Personal Computing. AI-enabled products and platform services are anticipated to expand addressable markets and drive higher-margin software revenues, while continued cash generation will support dividends, buybacks, and strategic investments. Key risks to monitor include competitive intensity in hyperscale cloud, ROI on AI deployments, currency fluctuations, and broader macro uncertainty.