Microsoft reported robust financial results in Q4 2024, led by significant investments in AI and cloud infrastructure. The company’s strategic focus on building platforms and tools powered by its AI assistant, Copilot, has positioned it as a leader in delivering innovative solutions to customers.
In 2024, Microsoft reported a strong fiscal year, with double-digit revenue and operating income growth. Its overall revenue increased surpassing 15.7% year-over-year to US$245.1 billion in 2024. Operating income and net income rose 23.6% and 21.8% year-on-year to US$109.4 billion US$88.1 billion respectively in 2024.
Financial indicatorQ4 2023 (US$ million)Q4 2024 (US$ million)Percentage changeRevenue56,18964,727+15.2%Productivity and business processes18,29120,317+11.1%Intelligent cloud23,99328,515+18.8%More personal computing13,90515,895+14.3%Operating income24,25427,925+15.1%Net income20,08122,036+9.7%Source: Microsoft
Microsoft reported strong quarterly financial results with no significant impact from foreign exchange fluctuations. The operating income margin of the productivity and business processes segment was the highest compared to the other two in Q4 2024.
Productivity and Business Processes
This segment is the powerhouse driving the company’s core software and services offerings. This division includes a suite of applications and platforms designed to enhance productivity, communication, and collaboration for both individuals and businesses.
In terms of Microsoft’s office productivity suite, applications like Word, Excel, and PowerPoint continue to dominate the market. Office commercial revenue increased 12%, fuelled by the growth of Office 365, which saw a 13% uptick. This growth was underpinned by increased average revenue per user due to the momentum of E5 plans and the introduction of Copilot for Microsoft 365. The installed base of paid Office 365 commercial seats expanded across all customer segments, with strength in small and medium businesses and frontline worker offerings.
Microsoft Teams has become a central hub for communication and collaboration, driving significant growth for the segment.
Dynamics 365, a suite of enterprise resource planning and customer relationship management business applications, is gaining traction
