Microsoft's Record Earnings Can't Shield It from Mounting Legal Scrutiny
Microsoft's summer has been marked by a mix of record earnings and legal challenges. The software giant reported revenue of $90.0 billion for the fourth quarter, an 18 percent jump from the prior-year period, while operating income climbed at the same clip to $40.6 billion.
The company's net income surged 31 percent to $35.8 billion on a US GAAP basis, with diluted earnings per share landing at $4.81, up 32 percent or $4.74 adjusted for one-time items.
However, this strong financial performance has been overshadowed by legal issues, including an antitrust complaint targeting Microsoft's multibillion-dollar alliance with OpenAI and an investigation into whether the company misled customers on pricing and subscription options for Microsoft 365 plans.