Microsoft rides Azure, cloud commercial revenue in strong Q4

Microsoft continues to fire on all cloud cylinders as it revs up Windows 11 for fiscal 2022.
Written by Larry Dignan, Contributor

Microsoft's fourth quarter results blew away expectations as commercial cloud revenue grew 36% and the company saw strong growth in Office 365, LinkedIn and Dynamics.

The software and cloud giant reported fourth quarter revenue of $46.2 billion, up 21% from a year ago, with net income of $16.5 billion, or $2.17 a share.

Wall Street analysts were modeling Microsoft to report revenue of $44.24 billion with non-GAAP earnings of $1.92 a share.

CEO Satya Nadella said in a statement the company was innovating well and driving "tech intensity" for its customers. Commercial cloud revenue in the fourth quarter was $19.5 billion, up 36% from a year ago. Azure revenue was up 51% in the quarter. 

Microsoft Teams hits 250 million monthly active user milestone

For fiscal 2021, Microsoft spent $20.7 billion on research and development, up from $19.2 billion in fiscal 2020. 

A few recent Microsoft highlights: 


By the Q4 numbers:

  • Revenue in Microsoft's productivity and business processes unit was up $14.7 billion, up 25%. Office Commercial products and cloud services revenue was up 20%.
  • Microsoft 365 Consumer subscribers ended the quarter at 51.9 million.
  • LinkedIn revenue was up 46% fueled by marketing solutions growth.
  • Intelligent cloud revenue was $17.4 billion, up 30%.
  • More personal computing revenue as $14.1 billion, up 9%.
  • Windows commercial products and cloud services revenue was up 20% in the fourth quarter. But Windows OEM revenue fell 3%.
  • Surface revenue fell 20% in the fourth quarter.

For fiscal 2021, Microsoft reported net income of $61.3 billion, or $8.05 a share, on revenue of $168.1 billion, up 18% from fiscal 2020.

Editorial standards