Microsoft's profits skyrocketed by 47 percent in Q4

Practically every business segment is booming.

Sponsored Links

3D-printed Microsoft logos are seen on a computer motherboard in this picture illustration taken July 22, 2021. REUTERS/Dado Ruvic/Illustration
Dado Ruvic / reuters

Microsoft's business continues to thrive thanks to its leadership in cloud computing and productivity apps. In its Q4 earnings report today, the company reported a 21 percent increase in revenues compared to last year, reaching $46.2 billion. But even more impressive, its profits jumped by 47 percent to reach $16.5 billion. Microsoft's success is practically a broken record by this point — last quarter it saw a 44 percent increase in profit, and before that it grew by 33 percent — but it's still managing to beat the expectations of Wall Street analysts.

The key to Microsoft's growth is the same as it has been for the past several years. Its Intelligent Cloud business is seemingly unstoppable, growing by 30 percent compared to last year. And it's still seeing plenty of growth with Office, Linkedin and its other business apps, which together have increased revenues by 25 percent. Even its More Personal Computing group, which includes Windows and Xbox, saw its business improve by 9 percent. (Thatcategory saw a few dips in the quarter though: Surface business fell by 20 percent, and Xbox content and services saw a 4 percent drop.)

Microsoft's Q4 earnings aren't really telling us anything new, as the company's entire 2021 fiscal year has been strong. The company reported an overall revenue increase of 18 percent for 2021 ($168.1 billion), as well as a 38 percent jump in profit for the year ($61.3 billion). Microsoft's previous earnings report proved that it made out well during the pandemic, but now it seems like those gains aren't stopping anytime soon. 

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Popular on Engadget