Microsoft reported impressive fiscal fourth-quarter results for 2024, achieving revenues of $64.7 billion, which marks a 15% increase compared to the previous year.

For the entire fiscal year 2024, Microsoft saw total revenues rise to $245.1 billion, reflecting a 16% year-over-year growth across all business segments.

Looking forward, Microsoft is projected to generate approximately $280 billion in revenues for fiscal year 2025, with net income expected to reach $98.6 billion.

Analysts anticipate that Microsoft's revenue growth will align with industry trends, forecasting a 14% annual growth rate, consistent with the company's historical performance.

The company's stock performance has been volatile, with a notable 52% increase in 2021, a 28% decline in 2022, and a remarkable 58% rise in 2023.

Year-to-date, Microsoft stock has gained around 12%, trailing slightly behind the S&P 500's 14% rise and Amazon's 20% increase.

Commercial bookings grew by 17%, indicating a slowdown from the previous quarter's 29% growth, which raises some concerns about future performance.

Despite the slowdown in bookings, the average spending per Azure AI customer has increased, with usage of Microsoft's data and analytics tools rising by 50%.

Azure and other cloud services revenues surged by 29%, although this figure fell short of analyst expectations.

Investors are advised to remain cautious, as one warning sign has been identified regarding Microsoft's future growth potential.

Overall, Microsoft met analyst expectations with its yearly results, achieving revenues of $245 billion and earnings per share of $11.80.

The consensus price target for Microsoft's shares remains at $498, with the most optimistic target set at $600 and the most pessimistic at $430.