Direct Answer
Microsoft's FY2024 revenue reached $245.122 billion (fiscal year ending June 30, 2024), up 15.7% from FY2023. Intelligent Cloud (Azure, server products) generated $105.357 billion (43.0% of revenue), Productivity and Business Processes (Office 365, LinkedIn, Dynamics) generated $77.451 billion (31.6%), and More Personal Computing (Windows, Xbox, Bing/Search) generated $62.314 billion (25.4%). Operating income reached $109.433 billion, a 43.7% operating margin, driven by Azure growth and software subscription scale.
Revenue by segment (FY2022 to FY2024)
| Segment | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Productivity and Business Processes | $63.364B | $69.274B | $77.451B |
| Intelligent Cloud | $75.251B | $87.907B | $105.357B |
| More Personal Computing | $54.093B | $54.035B | $62.314B |
| Total Revenue | $198.270B | $211.915B | $245.122B |
Microsoft reports three operating segments. Productivity and Business Processes includes Microsoft 365 commercial and consumer subscriptions, LinkedIn, and Dynamics 365. Intelligent Cloud includes Azure and other cloud services, SQL Server, Windows Server, GitHub, and enterprise services. More Personal Computing includes Windows OEM and commercial licensing, Xbox content and services, search and news advertising (Bing), and Surface devices.
Azure and cloud services (a component of Intelligent Cloud, not separately disclosed in dollar terms) grew approximately 29% in FY2024. Microsoft 365 Commercial cloud revenue grew approximately 14% in the same period.
Profitability (FY2022 to FY2024)
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Gross Profit | $135.620B | $146.052B | $171.008B |
| Gross Margin | 68.4% | 68.9% | 69.8% |
| Operating Income | $83.383B | $88.523B | $109.433B |
| Operating Margin | 42.1% | 41.8% | 44.7% |
| Net Income | $72.738B | $72.361B | $88.136B |
| Diluted EPS | $9.65 | $9.81 | $11.80 |
Gross margin expanded from 68.4% in FY2022 to 69.8% in FY2024, reflecting the continued shift toward higher-margin cloud and software subscription revenue. Operating margin improved to 44.7% in FY2024, recovering from a slight dip in FY2023. Net income in FY2023 was nearly flat versus FY2022 despite revenue growth due to higher operating expenses related to headcount and restructuring charges; FY2024 saw a sharper rebound as cost discipline took hold alongside Azure-driven revenue acceleration.
Cash flow and capital return (FY2023 to FY2024)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Operating Cash Flow | $87.582B | $118.548B |
| Capital Expenditures | $28.107B | $55.726B |
| Free Cash Flow | $59.475B | $62.822B |
| Dividends Paid | ~$19.8B | ~$21.8B |
| Share Repurchases | ~$17.6B | ~$16.7B |
Capital expenditures nearly doubled from $28.107 billion in FY2023 to $55.726 billion in FY2024, driven by investment in AI data centers, GPU servers, and networking infrastructure to support Azure OpenAI Service and Copilot products. Despite the capex surge, free cash flow reached $62.822 billion in FY2024 because operating cash flow grew even faster (up 35% to $118.548 billion). Microsoft guided for $80 billion or more in capital expenditures for FY2025, reflecting the continued AI infrastructure build-out. Total shareholder returns of approximately $38.5 billion in FY2024 were supported by this strong free cash flow base.
Frequently Asked Questions
What was Microsoft's total revenue in fiscal year 2024?
Microsoft's total revenue for fiscal year 2024 (ending June 30, 2024) was $245.122 billion, up 15.7% from $211.915 billion in FY2023. Intelligent Cloud was the largest segment at $105.357 billion (43.0% of revenue), driven primarily by Azure and cloud services growth of approximately 29%. Productivity and Business Processes contributed $77.451 billion (31.6%) and More Personal Computing contributed $62.314 billion (25.4%).
How fast is Azure growing?
Azure and other cloud services (reported within the Intelligent Cloud segment) grew approximately 29% in fiscal year 2024. Azure growth has been Microsoft's primary revenue driver and the key metric analysts and investors track. The rate reflects demand for cloud migration, AI workloads via Azure OpenAI Service, and expansion of hybrid cloud offerings. Microsoft does not separately disclose Azure's dollar revenue; it reports percentage growth.
What is Microsoft's capital expenditure trend and why does it matter?
Microsoft's capital expenditures rose sharply from $28.107 billion in FY2023 to $55.726 billion in FY2024, and management has guided for $80 billion or more in FY2025. The increase reflects investment in AI data centers, graphics processing unit servers and networking infrastructure required to support Azure OpenAI Service and Copilot offerings. High capex compresses free cash flow in the near term, so investors watch whether AI infrastructure spending converts into revenue and margin expansion over a multi-year horizon.
How much cash does Microsoft return to shareholders?
Microsoft returned approximately $38.5 billion to shareholders in FY2024 through dividends (~$21.8 billion) and share repurchases (~$16.7 billion). Microsoft has consistently grown its dividend since initiating it in 2003. Free cash flow of $62.822 billion in FY2024 supported this return after heavy capital investment. Investors track the balance between shareholder return and the AI infrastructure capex cycle as both demands compete for free cash flow.