Microsoft Smashes Q4 Revenue Expectations on Strong Cloud Growth

Microsoft's (MSFT) Q4 revenue exceeded expectations at $90.01 billion, marking an 18% increase from last year.

The company's Intelligent Cloud segment saw a significant boost of 32%, with Azure revenues growing by 43%. This growth has pushed Azure's annual revenues above the $100 billion mark, demonstrating Microsoft's strong position in the cloud computing market.

Microsoft is also investing heavily in AI capacity, with plans to deploy Maia 300 chips and 50MW AI units. The company aims to produce over 300,000 Maia 300 chips by 2027, with a long-term target of 1 million units. This move comes on the heels of Microsoft's rollout of the Maia 200 chip last year.

As part of its AI capacity expansion, Microsoft is partnering with cloud providers to run workloads, including deploying four planned 50 MW AI cloud units at IREN's Childress, Texas campus under a five-year, $9.7 billion deal.