Microsoft (MSFT) Q4 2025 Earnings Call Transcript
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(NASDAQ:MSFT) reported broad segment outperformance, highlighted by a 23% increase in Microsoft Cloud annual revenue for fiscal 2025 and sustained expansion in Azure, Copilot adoption, and data center capacity. Management stated, "We saw accelerating growth from migrations again this quarter," referencing high-profile migration wins such as Nestle during the quarter and indicating migration activity as a key Azure tailwind. Fiscal year-end commercial bookings exceeded $100 billion for the first time in fiscal 2025, supported by a 35% rise in total remaining performance obligations in fiscal Q4 2025 and increasing contract value, while capital investments scaled to address ongoing capacity constraints despite significant capacity coming online. Guidance for fiscal 2026 projects double-digit revenue and operating income growth, moderated capital expenditure growth compared to fiscal 2025, but management cautions Microsoft Cloud gross margin percentage will decline as AI infrastructure scaling persists, with guidance indicating this trend for fiscal Q1 2026.
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Microsoft Corp. Stock
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With a target price of 475 € there is a slightly positive potential of 4.72% for Microsoft Corp. compared to the current price of 453.6 €.
