Microsoft's shares dipped on Wednesday, despite surpassing earnings and revenue expectations, as investors focused on lackluster cloud results. The company reported earnings per share of $2.95 on revenue of $64.73 billion for the fiscal fourth quarter, which ended June 30. This marks a 15% year-over-year revenue increase and a net income of $22.04 billion, up from $20.08 billion in the previous year. However, the Intelligent Cloud segment, which includes Azure, reported $28.52 billion in revenue, slightly below the consensus estimate of $28.68 billion. Azure and other cloud services grew by 29%, falling short of the expected 31%.

Looking ahead, Microsoft projected fiscal first-quarter revenue between $63.8 billion and $64.8 billion, with Azure revenue growth anticipated to range between 28% and 29% at constant currency. This forecast reflects cautious optimism, as Microsoft expects stronger growth in the latter half of the fiscal year. The company's Productivity and Business Processes unit, including Office and LinkedIn, brought in $20.32 billion, exceeding expectations. Meanwhile, the More Personal Computing segment, covering Windows, gaming, and devices, generated $15.90 billion in revenue, bolstered by a stabilizing PC market.