Executive Summary
Microsoft delivered a resilient QQ4 2024 performance with a revenue base of $64.73 billion, marking a year-over-year growth of 15.2% and a quarter-over-quarter increase of 4.6%. The company generated strong profitability, with gross margins of 69.6% and an operating margin of 43.1%, culminating in net income of $22.04 billion and earnings per diluted share of $2.95–$2.96. Free cash flow reached $23.32 billion, supported by operating cash flow of $37.20 billion and a cash balance position of $18.32 billion, alongside substantial liquidity from total cash and short-term investments of $75.53 billion. The balance sheet remains robust (total assets $512.16B; total equity $268.48B; net debt about $48.81B) and capital allocation remains accretive, with ongoing share repurchases and dividend payments.
Key Performance Indicators
Key Insights
Revenue: $64.73B (+15.20% YoY; +4.64% QoQ). Gross Profit: $45.04B (+14.34% YoY; +3.90% QoQ). Operating Income: $27.93B (+15.14% YoY; +1.25% QoQ). Net Income: $22.04B (+9.74% YoY; +0.44% QoQ). EPS (diluted): $2.95–$2.96 (+9.63% YoY; +0.34% QoQ). Margins: Gross 69.6%; Operating 43.1%; Net 34.0%. Cash Flow: Operating CF $37.20B; Free Cash Flow $23.32B. Liquidity: Cash and ST investments $75.53B; Cash at period end $18.32B. Balance Sheet: Total assets $512.16B; Total liabilities $243.69B; Total st...
Financial Highlights
Revenue: $64.73B (+15.20% YoY; +4.64% QoQ). Gross Profit: $45.04B (+14.34% YoY; +3.90% QoQ). Operating Income: $27.93B (+15.14% YoY; +1.25% QoQ). Net Income: $22.04B (+9.74% YoY; +0.44% QoQ). EPS (diluted): $2.95–$2.96 (+9.63% YoY; +0.34% QoQ). Margins: Gross 69.6%; Operating 43.1%; Net 34.0%. Cash Flow: Operating CF $37.20B; Free Cash Flow $23.32B. Liquidity: Cash and ST investments $75.53B; Cash at period end $18.32B. Balance Sheet: Total assets $512.16B; Total liabilities $243.69B; Total stockholders’ equity $268.48B. Leverage: Net debt $48.81B; Interest coverage ~39.8x. Return metrics: ROE 8.21%; ROA 4.30%; ROCE 7.22%.
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
$4.98
freeCashFlowPerShare
$3.12
dividendPayoutRatio
25.3%
Management Commentary
Note: The earnings transcript for QQ4 2024 is not provided in the dataset. As a result, management quotes and staged highlights from the call are not included here. The analysis below reflects the reported financials and inferred implications based on the quarterly results.
Forward Guidance
Management did not publish explicit forward-looking guidance in the provided data. The QQ4 2024 results imply continued strength in cloud and productivity demand, with AI-enabled offerings likely to be a key growth vector. Investors should monitor: (1) Azure/Intelligent Cloud growth trajectory and AI monetization progress (e.g., Copilot and related AI services), (2) Windows/OEM licensing cadence and Surface hardware demand, (3) expense discipline amidst AI investments (R&D and SG&A evolution), and (4) capital allocation policy including share repurchases and dividend sustainability in a higher-rate environment.