So Microsoft’s about to spill the tea on their Q4 fiscal 2025 earnings this Wednesday (July 30), and honestly? The numbers are looking pretty spicy.
Here’s the deal: Wall Street nerds are expecting MSFT to rake in about $73.71 billion in revenue – that’s a solid 13.88% bump from last year. Not too shabby for a company that’s older than most TikTok users.
The AI Money Machine Keeps Churning
Remember when everyone was freaking out about AI taking over the world? Well, Microsoft decided to lean into that panic and throw $80 billion at building AI infrastructure. Turns out, that wasn’t just expensive flexing – it’s actually paying off big time.
Their Azure cloud business (think of it as Microsoft’s digital real estate empire) is expected to grow a whopping 34-35%. That’s the kind of growth that makes other tech CEOs cry into their oat milk lattes.
Breaking Down the Money Makers
Microsoft basically has three cash cows:
First up: Productivity and Business Processes (aka the Office suite that runs your life). They’re projecting around $32.1 billion here, with Microsoft 365 still being stickier than that one friend who never leaves your couch.
Then there’s Intelligent Cloud – the real MVP. This segment is expected to pull in about $28.89 billion, up 21.5% from last year. Azure is basically printing money at this point, and every company scrambling to “go digital” is helping Microsoft’s bottom line.
Finally, More Personal Computing (Windows, Xbox, etc.) is the awkward middle child, expected to bring in around $12.43 billion. Fun fact: Minecraft apparently had a movie that made $900 million globally. Yes, really. Block-based entertainment is apparently recession-proof.
The Reality Check
Now, before you start throwing your life savings at MSFT stock, let’s pump the brakes. The stock is trading at about 12 times its sales, which is pretty pricey compared to other software companies. It’s like buying a designer handbag – you’re paying for the brand name and hoping it holds its value.
Microsoft shares are already up 21.2% this year, so a lot of good news might already be baked into the price. The market has a funny way of saying “thanks, but we already knew that” when companies deliver exactly what everyone expected.
The Bottom Line
Microsoft isn’t just riding the AI wave – they’re basically surfing it while everyone else is still figuring out how to put on a wetsuit. Their massive infrastructure investments are creating a moat that competitors will struggle to cross.
Sure, the stock isn’t cheap, but when you’re the house in the AI casino, you tend to win more often than not. Just don’t bet the farm – even the best companies can have off quarters, and the market loves to overreact to literally everything.
Wednesday’s earnings call should be interesting. Grab some popcorn.