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Information about Microsoft's earnings is released publicly at the end of each quarter of the fiscal year. For Microsoft, this is done during an earnings call usually hosted by CEO Satya Nadella.
An earnings call consists of company executives laying out the current state of the company's financial situation and explaining how the company performed over the course of the closing quarter. It also involves projections about upcoming fiscal performance. These calls are closely watched by investors, economists, and regulators.
In 2024, some of the major themes on these earnings calls were the advancement of AI tools like Copilot, which was first launched in late 2023, and layoffs at Microsoft, largely in the company's gaming division.
Things were going well for Microsoft as of the October 2024 earnings call which covered the first quarter of the 2025 fiscal year calendar. Revenues were just over $65.6 billion, a 16% increase year-over-year.
Among the specifics discussed were a 10% increase in revenue for LinkedIn and a 61% increase in revenues for Xbox "content and services."
The company reportedly returned $9 billion to shareholders in the form of dividends and stock buybacks. On October 30, Microsoft's stock price was trading at around $432 per share.
The July 2024 earnings call was mostly filled with good news. Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft reported that the quarterly revenue was $64.7 billion, which was up 15% over the previous quarter.
Hood also reported that share prices were up $2.95 over the previous quarter. (On July 30, 2024, Microsoft share prices were at $4.22.92 per share at the close of the market.) Q4 was the best quarter of the fiscal year for Microsoft.
Not all the news was good, though: revenues for Xbox video game console hardware fell by 42%, and this drop surely helped account for large round of layoffs in Microsoft's gaming division.
Microsoft's revenues for the third quarter of the 2024 fiscal year were almost as strong as those of the fourth quarter. In April 2024, the company reported overall revenues of $61.9 billion for the months of January, February, and March of that year, a 17% year-over-year increase.
Revenues increased for platforms like LinkedIn and software suites like Office 365, but decreased for some physical device sales. Share prices increased by $2.94 on average. And Xbox "content and services revenue" increased by 62%, this increase coming only a few months after Microsoft's acquisition of the gaming company Activision Blizzard.
In the months of October, November, and December of 2023, the second quarter of the 2024 fiscal year, revenue was almost the same as the following Q3. Q2 revenues were $62 billion, a 18% YOY increase.
The massive acquisition of Activision Blizzard concluded during the early days of this quarter, with the software company laying out $69 billion to acquire the gaming company. And artificial intelligence was top-of-mind for Nadella, who said in the earnings call that "we've moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector."
Like most major tech companies, Microsoft spent 2024 adjusting to the post-pandemic slump in what some are calling a tech industry recession.
At the same time, a fiercely competitive AI arms race has proven challenging, even with Microsoft's 2023 launch of Copilot.
In 2020, the peak year of the COVID-19 pandemic, Microsoft's annual revenues were $143 billion. 2021 saw an increase to $168 billion, while 2022 saw another jump to $198 billion in revenues. In 2023, Microsoft revenues were $211 billion, and when you add all those quarters of FY24 up, you'll see its 2024 fiscal year revenues were a healthy $245 billion.
