MSFT Microsoft Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 29, 2025

Microsoft Corporation

Washington		001-37845		91-1144442
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

One Microsoft Way, Redmond, Washington 98052-6399

(425) 882-8080

www.microsoft.com/investor

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol		Name of exchange on which registered
Common stock, $0.00000625 par value per share		MSFT		Nasdaq
3.125% Notes due 2028		MSFT		Nasdaq
2.625% Notes due 2033		MSFT		Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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Item 2.02.	Results of Operations and Financial Condition

On January 29, 2025, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.	Financial Statements and Exhibits

(d) Exhibits:

	99.1	Press release, dated January 29, 2025, issued by Microsoft Corporation
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MICROSOFT CORPORATION
Date: January 29, 2025		/s/ ALICE L. JOLLA
		Alice L. Jolla
		Corporate Vice President and Chief Accounting Officer

 

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Exhibit 99.1

Microsoft Cloud and AI Strength Drives Second Quarter Results

REDMOND, Wash. — January 29, 2025 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2024, as compared to the corresponding period of last fiscal year:

“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," said Satya Nadella, chairman and chief executive officer of Microsoft. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

“This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. ”We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”

Business Highlights

Revenue in Productivity and Business Processes was $29.4 billion and increased 14% (up 13% in constant currency), with the following business highlights:

Revenue in Intelligent Cloud was $25.5 billion and increased 19%, with the following business highlights:

Revenue in More Personal Computing was $14.7 billion and was relatively unchanged, with the following business highlights:

Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the second quarter of fiscal year 2025.

 

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Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Environmental, Social, and Governance (ESG)

To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 29, 2026.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

		Three Months Ended December 31,
($ in millions, except per share amounts)		Revenue		Operating Income		Net Income		Diluted Earnings per Share
2023 As Reported (GAAP)		$62,020		$27,032		$21,870		$2.93
2024 As Reported (GAAP)		$69,632		$31,653		$24,108		$3.23
Percentage Change Y/Y (GAAP)		12%		17%		10%		10%
Constant Currency Impact		$171		$206		$14		$0.00
Percentage Change Y/Y Constant Currency		12%		16%		10%		10%

 

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Segment Revenue Constant Currency Reconciliation

		Three Months Ended December 31,
($ in millions)		Productivity and Business Processes		Intelligent Cloud		More Personal Computing
2023 As Reported (GAAP)		$25,854		$21,525		$14,641
2024 As Reported (GAAP)		$29,437		$25,544		$14,651
Percentage Change Y/Y (GAAP)		14%		19%		0%
Constant Currency Impact		$142		$(22)		$51
Percentage Change Y/Y Constant Currency		13%		19%		0%

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

Selected Product and Service Revenue Constant Currency Reconciliation

		Three Months Ended December 31, 2024
		Percentage Change Y/Y (GAAP)		Constant Currency Impact		Percentage Change Y/Y Constant Currency
Microsoft Cloud		21%		0%		21%
Microsoft 365 Commercial products and cloud services		15%		0%		15%
Microsoft 365 Commercial cloud		16%		(1)%		15%
Microsoft 365 Consumer products and cloud services		8%		0%		8%
Microsoft 365 Consumer cloud		8%		0%		8%
LinkedIn		9%		0%		9%
Dynamics products and cloud services		15%		(1)%		14%
Dynamics 365		19%		(1)%		18%
Server products and cloud services		21%		0%		21%
Azure and other cloud services		31%		0%		31%
Windows OEM and Devices		4%		0%		4%
Xbox content and services		2%		0%		2%
Search and news advertising excluding traffic acquisition costs		21%		(1)%		20%

 

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

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For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of December 31, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

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For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Brett Iversen, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

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MICROSOFT CORPORATION

 

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

 

		Three Months Ended December 31,				Six Months Ended December 31,
		2024		2023		2024		2023
Revenue:
Product		$16,219		$18,941		$31,491		$34,476
Service and other		53,413		43,079		103,726		84,061
Total revenue		69,632		62,020		135,217		118,537
Cost of revenue:
Product		3,856		5,964		7,150		9,495
Service and other		17,943		13,659		34,748		26,430
Total cost of revenue		21,799		19,623		41,898		35,925
Gross margin		47,833		42,397		93,319		82,612
Research and development		7,917		7,142		15,461		13,801
Sales and marketing		6,440		6,246		12,157		11,433
General and administrative		1,823		1,977		3,496		3,451
Operating income		31,653		27,032		62,205		53,927
Other expense, net		(2,288)		(506)		(2,571)		(117)
Income before income taxes		29,365		26,526		59,634		53,810
Provision for income taxes		5,257		4,656		10,859		9,649
Net income		$24,108		$21,870		$48,775		$44,161
Earnings per share:
Basic		$3.24		$2.94		$6.56		$5.94
Diluted		$3.23		$2.93		$6.53		$5.92
Weighted average shares outstanding:
Basic		7,435		7,432		7,434		7,431
Diluted		7,468		7,468		7,469		7,465

 

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COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended				Six Months Ended
		December 31,				December 31,
		2024		2023		2024		2023
Net income		$24,108		$21,870		$48,775		$44,161
Other comprehensive income (loss), net of tax:
Net change related to derivatives		34		(3)		24		18
Net change related to investments		(434)		1,331		680		1,071
Translation adjustments and other		(1,034)		660		(730)		305
Other comprehensive income (loss)		(1,434)		1,988		(26)		1,394
Comprehensive income		$22,674		$23,858		$48,749		$45,555

 

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BALANCE SHEETS

(In millions) (Unaudited)

 

		December 31, 2024		June 30, 2024
Assets
Current assets:
Cash and cash equivalents		$17,482		$18,315
Short-term investments		54,073		57,228
Total cash, cash equivalents, and short-term investments		71,555		75,543
Accounts receivable, net of allowance for doubtful accounts of $662 and $830		48,188		56,924
Inventories		909		1,246
Other current assets		26,428		26,021
Total current assets		147,080		159,734
Property and equipment, net of accumulated depreciation of $82,820 and $76,421		166,902		135,591
Operating lease right-of-use assets		22,816		18,961
Equity and other investments		15,581		14,600
Goodwill		119,191		119,220
Intangible assets, net		25,385		27,597
Other long-term assets		36,943		36,460
Total assets		$533,898		$512,163
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$22,608		$21,996
Short-term debt		0		6,693
Current portion of long-term debt		5,248		2,249
Accrued compensation		9,176		12,564
Short-term income taxes		6,056		5,017
Short-term unearned revenue		45,508		57,582
Other current liabilities		20,286		19,185
Total current liabilities		108,882		125,286
Long-term debt		39,722		42,688
Long-term income taxes		24,389		27,931
Long-term unearned revenue		2,537		2,602
Deferred income taxes		2,513		2,618
Operating lease liabilities		17,254		15,497
Other long-term liabilities		35,906		27,064
Total liabilities		231,203		243,686
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,435 and 7,434		104,829		100,923
Retained earnings		203,482		173,144
Accumulated other comprehensive loss		(5,616)		(5,590)
Total stockholders' equity		302,695		268,477
Total liabilities and stockholders' equity		$533,898		$512,163

 

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CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended				Six Months Ended
		December 31,				December 31,
		2024		2023		2024		2023
Operations
Net income		$24,108		$21,870		$48,775		$44,161
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other		6,827		5,959		14,210		9,880
Stock-based compensation expense		3,089		2,828		5,921		5,335
Net recognized losses on investments and derivatives		976		198		851		212
Deferred income taxes		(1,158)		(1,702)		(2,591)		(2,270)
Changes in operating assets and liabilities:
Accounts receivable		(5,978)		(2,951)		8,059		8,083
Inventories		711		1,474		338		969
Other current assets		(353)		725		(435)		(71)
Other long-term assets		(1,089)		(1,427)		(2,850)		(3,440)
Accounts payable		958		(2,521)		42		(1,307)
Unearned revenue		(6,338)		(5,538)		(11,891)		(9,664)
Income taxes		(3,395)		(1,554)		(2,379)		(129)
Other current liabilities		3,217		1,518		(2,262)		(2,588)
Other long-term liabilities		716		(26)		683		265
Net cash from operations		22,291		18,853		56,471		49,436
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net		0		(8,490)		(5,746)		10,202
Proceeds from issuance of debt		0		10,773		0		17,846
Repayments of debt		0		(2,916)		(966)		(4,416)
Common stock issued		256		261		962		946
Common stock repurchased		(4,986)		(4,000)		(9,093)		(8,831)
Common stock cash dividends paid		(6,170)		(5,574)		(11,744)		(10,625)
Other, net		(343)		(201)		(1,232)		(508)
Net cash from (used in) financing		(11,243)		(10,147)		(27,819)		4,614
Investing
Additions to property and equipment		(15,804)		(9,735)		(30,727)		(19,652)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets		(1,405)		(65,029)		(3,254)		(66,215)
Purchases of investments		(2,050)		(4,258)		(3,670)		(12,718)
Maturities of investments		2,604		4,150		4,740		19,868
Sales of investments		2,559		1,600		4,527		6,930
Other, net		(16)		1,347		(929)		365
Net cash used in investing		(14,112)		(71,925)		(29,313)		(71,422)
Effect of foreign exchange rates on cash and cash equivalents		(294)		72		(172)		(27)
Net change in cash and cash equivalents		(3,358)		(63,147)		(833)		(17,399)
Cash and cash equivalents, beginning of period		20,840		80,452		18,315		34,704
Cash and cash equivalents, end of period		$17,482		$17,305		$17,482		$17,305

 

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SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)

 

		Three Months Ended				Six Months Ended
		December 31,				December 31,
		2024		2023		2024		2023
Revenue
Productivity and Business Processes		$29,437		$25,854		$57,754		$51,080
Intelligent Cloud		25,544		21,525		49,636		41,538
More Personal Computing		14,651		14,641		27,827		25,919
Total		$69,632		$62,020		$135,217		$118,537
Operating Income
Productivity and Business Processes		$16,885		$14,515		$33,401		$28,812
Intelligent Cloud		10,851		9,555		21,354		18,463
More Personal Computing		3,917		2,962		7,450		6,652
Total		$31,653		$27,032		$62,205		$53,927

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

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v3.24.4

Document and Entity Information	Jan. 29, 2025
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jan. 29, 2025
Entity Registrant Name	Microsoft Corporation
Entity Incorporation, State or Country Code	WA
Entity File Number	001-37845
Entity Tax Identification Number	91-1144442
Entity Address, Address Line One	One Microsoft Way
Entity Address, City or Town	Redmond
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98052-6399
City Area Code	425
Local Phone Number	882-8080
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000789019
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.00000625 par value per share
Trading Symbol	MSFT
Security Exchange Name	NASDAQ
3.125% Notes Due 2028 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2028
Trading Symbol	MSFT
Security Exchange Name	NASDAQ
2.625% Notes Due 2033 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.625% Notes due 2033
Trading Symbol	MSFT
Security Exchange Name	NASDAQ

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