Microsoft holds quarterly earnings calls to discuss the company’s financial performance. The 2024 earnings call covered topics such as Activision Blizzard’s acquisitions, AI, and layoffs. Here’s what you need to know about Microsoft’s revenue, profits, and more.
Information about Microsoft’s earnings is made available to the public at the end of each fiscal quarter. In Microsoft’s case, this usually takes place during an earnings call hosted by CEO Satya Nadella.
At a financial results meeting, a company’s management explains the current state of the company’s financial situation and explains the company’s performance for the last quarter. This includes projections regarding future financial performance. These calls are being closely watched by investors, economists, and regulators.
In 2024, some of the main themes of these earnings calls were advancements in AI tools like Copilot, which first launched in late 2023, and job cuts at Microsoft, primarily in its gaming division.
Microsoft Q1 2025 Earnings
Things were looking good for Microsoft at the time of its October 2024 earnings release, which covered the first quarter of the 2025 fiscal year calendar. Revenue was just over $65.6 billion, an increase of 16% year over year.
Some of the specifics discussed included a 10% increase in LinkedIn’s revenue and a 61% increase in Xbox’s “content and services” revenue.
The company reportedly returned $9 billion to shareholders in the form of dividends and stock buybacks. On October 30, Microsoft’s stock was trading at about $432 per share.
Microsoft Q4 2024 Financial Results
The July 2024 financial results announcement was mostly filled with good news. Amy Hood, Microsoft’s executive vice president and chief financial officer, reported quarterly revenue of $64.7 billion, an increase of 15% from the previous quarter.
Hood also reported that the stock price increased $2.95 quarter-over-quarter. (At market close on July 30, 2024, Microsoft’s stock price was $4.22.92 per share.) The fourth quarter was Microsoft’s best quarter of the fiscal year.
But it wasn’t all good news. Xbox video game console hardware revenue fell by 42%, and this decline undoubtedly contributed to the massive layoffs in Microsoft’s gaming division.
Microsoft Q3 2024 Financial Results
Microsoft’s fiscal 2024 third quarter earnings were about as strong as the fourth quarter. In April 2024, the company reported total revenue of $61.9 billion for January, February, and March of the year, an increase of 17% year over year.
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Revenues from platforms like LinkedIn and software suites like Office 365 rose, but sales of some physical devices fell. Stocks rose an average of $2.94. Additionally, Xbox’s “content and services revenue” increased by 62%. This increase comes just months after Microsoft’s acquisition of gaming company Activision Blizzard.
Microsoft’s 2024 Q2 Financial Results
Sales in October, November, and December 2023, which is the second quarter of fiscal 2024, were at almost the same level as the third quarter of the following year. Second quarter revenue was $62 billion, an 18% increase from the year-ago period.
Activision Blizzard’s big acquisition closed earlier this quarter, with the software company spending $69 billion to buy gaming companies. And for Nadella, artificial intelligence is a top priority, saying on the earnings call: “We’ve moved from talking about AI to applying AI at scale. Injecting AI into every layer of the technology stack. And we’re getting new benefits.” We serve our customers and drive new benefits and productivity improvements in all areas. ”
Microsoft earnings history
Like most big tech companies, Microsoft spent 2024 adjusting to the post-pandemic downturn, which some are calling the tech recession.
At the same time, even if Microsoft launches Copilot in 2023, the fierce AI arms race is proving difficult.
In 2020, at the peak of the COVID-19 pandemic, Microsoft’s annual revenue was $143 billion. In 2021, revenue increased to $168 billion, and in 2022, revenue increased further to $198 billion. Microsoft’s revenue in 2023 was $211 billion, and if you add up all quarters of fiscal year 2024, you’ll see a healthy $245 billion in revenue for fiscal year 2024.
