Microsoft shares jumped 7% in extended trading on Wednesday after the company reported better-than-expected earnings and revenue for the fiscal fourth quarter.

Here’s how the company performed in comparison with LSEG consensus:

• Earnings per share: $3.65 vs. $3.37 expected
• Revenue: $76.44 billion vs. $73.81 billion expected

Microsoft’s revenue increased 18% in the fiscal fourth quarter ending June 30, up from $64.7 billion a year earlier, according to a statement. Net income increased to $27.23 billion from $22.04 billion a year ago.

The company’s Intelligent Cloud unit that includes the Azure cloud produced $29.88 billion in revenue, up about 26% and beating the StreetAccount consensus of $28.92 billion.

For the first time, Microsoft disclosed the scale of its Azure business in dollars. In fiscal 2025, revenue from Azure and other cloud services exceeded $75 billion, up 34% from the prior year.

During the fiscal fourth quarter, revenue from Azure grew 39%. Analysts polled by StreetAccount and CNBC had anticipated Azure growth of 34.4% and 35.3%, respectively.

The company’s Productivity and Business Processes segment, which is home to Office productivity software and LinkedIn, delivered $33.11 billion in revenue, topping the $32.12 billion consensus among analysts polled by StreetAccount.

The More Personal Computing unit, which encompasses Windows, search advertising, devices and video games, totaled $13.45 billion. The number was up 9% and higher than StreetAccount’s $12.68 billion billion consensus.

Microsoft said sales of devices and of Windows operating licenses to device makers increased 3%. Gartner, a company that researches the technology industry, estimated that PC shipments went up 4.4% in the quarter.

Microsoft and its megacap tech peers are racing to build data centers packed with chips for developing artificial intelligence models and running increasingly hefty workloads. Microsoft had $24.2 billion in capital expenditures and assets acquired through finances leases for the quarter, up 27% from a year earlier.

Last week Alphabet, the parent company of Google, bumped up its 2025 capital spending forecast by $10 billion to $85 billion. And Meta said on Wednesday that capital expenditures will come in between $66 billion and $72 billion for the year, raising the low end of its previous estimate from $64 billion.

During the quarter, Microsoft celebrated its 50th anniversary, laid off more than 6,000 people and introduced a GitHub feature for assigning coding tasks to the Copilot assistant. The company also said LinkedIn chief Ryan Roslansky would take on added responsibility running Office productivity applications.

Microsoft said it had $1.71 billion in other expense during the quarter. That includes recognized losses on equity method investments such as OpenAI. Other expense in the prior quarter was $623 million.

As of Wednesday’s close, Microsoft shares were up 22% for the year and trading near a record, while the S&P 500 index had gained about 8%.

Executives will discuss the results with analysts on a conference call starting at 5:30 p.m. ET.

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