Microsoft exceeded Wall Street expectations in its recent quarterly report, largely due to strong performance in its cloud services division. The company announced on Wednesday that it achieved $65.6 billion in revenue, marking a 16% increase from the previous year and surpassing analyst forecasts of $64.57 billion. Net profits rose to $24.67 billion, an 11% increase from the $22.29 billion recorded in the same quarter last year.
These financial results translated to an earnings per share of $3.30, which was higher than the anticipated $3.10. Consequently, Microsoft’s stock experienced a 1.3% increase in after-hours trading, reaching $438.28.
CEO Satya Nadella attributed part of this growth to the quick adoption of artificial intelligence, noting its transformative effects on workplaces. Nadella stated that the company is expanding opportunities and gaining new customers by applying AI platforms and tools to stimulate growth and operational efficiency.
The company’s cloud services generated $38.9 billion in revenue, a 22% rise from the same period the previous year. This segment is particularly significant as businesses frequently rely on cloud providers for AI data processing. In the latest fiscal year, cloud services comprised nearly 43% of Microsoft’s annual revenue.
Microsoft’s intelligent cloud revenue reached $24.1 billion, reflecting a 20% increase from the prior year. Revenue from Azure server products and cloud services grew by 23%, while other cloud services saw a 33% increase.
In the productivity and business processes sector, which includes Microsoft 365 and LinkedIn, sales totaled $28.3 billion, representing a 12% rise. Additional details about the company’s financial performance are expected to be shared by CEO Satya Nadella and CFO Amy Hood during their earnings call scheduled for 5:30 p.m. ET. This report is part of an ongoing story with further updates anticipated.
