Microsoft's annual cloud revenue hits $75B, profit beats expectations
The Azure cloud business has been a centerpiece of Microsoft's efforts to shift its focus to artificial intelligence, but until Wednesday the company hadn't disclosed how much money it makes.
The revelation came in the software giant's end-of-year earnings report. The company also said its fiscal fourth-quarter profit was $34.3 billion, or $3.65 per share, beating analyst expectations for $3.37 per share.
It posted revenue of $76.4 billion in the April-June period, up 18% from last year. Analysts polled by FactSet Research had been looking for revenue of $73.86 billion.
Microsoft launched Azure more than a decade ago, but the product has increasingly become intertwined with its AI ambitions, as the company looks to sell its AI chatbot and other tools to big business customers that are also reliant on its core online services.
But building the infrastructure to power cloud and AI technology is expensive, and Microsoft has looked for savings elsewhere. It has announced layoffs of about 15,000 workers this year even as its profits have soared.
Microsoft CEO Satya Nadella told employees last week the layoffs were 'weighing heavily' on him but also positioned them as an opportunity to reimagine the company's mission for an AI era.
Promises of a leaner approach have been welcomed on Wall Street, especially as Microsoft and other tech giants are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.
Google said after releasing its earnings last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft is expected to outline similar guidance soon.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
3 minutes ago
- Forbes
The Importance Of Listening As A Leadership Skill
Heather Heefner is the owner of Dart Communication. She is a communication expert and leadership coach. The most expensive leadership mistake isn't a bad strategic decision—it's failing to listen effectively. Harvard Business School reports that when employees feel genuinely heard at work, they experience greater internal motivation, increased creativity and stronger engagement. Yet most leaders retain only a fraction of what they hear in conversations, missing critical insights, early warnings and breakthrough ideas flowing through their organizations daily. While everyone focuses on speaking more persuasively, the real competitive advantage comes from listening more effectively. Google's extensive research on team effectiveness found that psychological safety—the belief that one can speak up without fear of negative consequences—was the number one predictor of high-performing teams. And psychological safety begins with leaders who actually listen. In my practice of communication coaching and consulting, I've observed that the most effective leaders listen differently than their peers. They don't just listen for information—they listen for understanding. They don't just listen with their ears—they listen with their full attention. And they don't just listen to confirm what they already believe—they listen to discover what they don't yet know. 4 Levels Of Listening That Every Leader Must Master Not all listening is created equal. Understanding these four levels will help you recognize where you currently operate and where you need to go: This is pretend listening—when you're physically present but mentally elsewhere. You might nod and say "uh-huh," but you're actually thinking about your response, your next meeting or that urgent email. Your team can always tell when you're not really there, which erodes trust and pushes conversations into unproductive territory. At this level, you're engaged enough to respond appropriately. You follow the conversation thread and can ask relevant questions. This is the minimum acceptable standard for professional interactions, but it doesn't create conditions for breakthrough insights or a deep connection. Here, you're fully present and focused on understanding both content and emotion. You ask clarifying questions, paraphrase to confirm understanding and notice nonverbal cues. This level demonstrates respect and builds trust, and it's where most effective leaders consistently operate. The highest form of listening goes beyond understanding what is said to sensing what wants to emerge. You listen with such presence and openness that you create space for new possibilities. You hear not just words but underlying needs, values and aspirations. This is where innovation happens and conflicts transform into collaboration. Most leaders operate at levels 1 and 2 most of the time. The challenge is consistently practicing levels 3 and 4, especially in high-stakes situations. 3 Practices That Transform Your Listening Effectiveness Based on my work with leaders across industries, here are the three most impactful practices for elevating your listening: Before important conversations, take a moment to clear your mind and set an intention to be fully present. A simple practice: Take three deep breaths, let go of distractions with each exhale and silently commit to listening with both attention and curiosity. I worked with a CEO who began each meeting with 30 seconds of silence—a micro-meditation that helped everyone transition from previous activities and become fully present. The impact on dialogue quality was remarkable. Team members reported feeling more valued, decisions became more aligned and meetings became shorter because the quality of listening improved. One of the biggest barriers to effective listening is our tendency to evaluate what's being said—to mentally categorize it as right or wrong, useful or irrelevant, aligned with our views or opposed to them. Practice suspending judgment and listening instead for understanding. Your goal isn't to agree or disagree but to fully comprehend the other person's perspective—their reasoning, their concerns, their hopes. This doesn't mean you'll ultimately agree, but understanding must precede evaluation. A manager I coached was struggling with what she called a "difficult" employee. When she set aside her assumptions and listened with genuine curiosity, she discovered the underlying concerns driving the behavior. What seemed like resistance was actually valuable insight about process inefficiencies that, once addressed, improved the entire team's performance. The questions you ask reveal the quality of your listening. Surface-level listening produces surface-level questions. Deep listening enables questions that open new possibilities: "What's at the heart of this issue for you?" "How does this connect to what matters most for our customers?" "What's possible here that we haven't considered yet?" "What would make this a win for everyone involved?" These questions demonstrate that you've listened deeply enough to move the conversation forward in meaningful ways. An executive I worked with was known for his brilliant but overwhelming communication style. When he learned to listen first and ask generative questions, his influence dramatically increased because his ideas were better received and more readily implemented. The Competitive Advantage Of Deep Listening I've seen the transformative impact of deep listening in countless leadership situations: Teams that were deeply divided on strategic direction found common ground when their leader created space for each perspective to be fully heard without judgment. Executives who shifted from speaking to listening became catalysts for breakthrough results and stronger relationships. In a world where everyone is talking, the ability to truly listen has become a rare and valuable leadership skill that creates a competitive advantage for both you and your organization. Your Next Step Choose one upcoming important conversation this week. Before it begins, take three deep breaths and commit to listening for understanding rather than agreement. Notice what you learn that surprises you. That single shift—from speaking to listening—might be the catalyst for your next breakthrough as a leader. Remember: While others are focused on being heard, exceptional leaders focus on hearing others. That's where real influence begins. Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?
CNET
28 minutes ago
- CNET
Act Fast to Get the Pixel 9 Pro Fold at $50 Off, a Brand-New Low
The world of foldable phones got a lot more competitive last year when the Pixel 9 Pro launched. The high-quality Google phone is packed with features and plenty of power, and it's helped keep the field a bit more interesting for buyers. Competition breeds growth, after all. If you're looking for a good deal on this excellent phone, then you'll want to get the Google Pixel 9 Pro Fold from Amazon today, because it's currently $500 off. This deal isn't likely to last for very long, and is also the lowest price we've seen the device at. In our review of the Pixel 9 Pro Fold, mobile expert Lisa Eadicicco stated that the device is "more polished and practical" in terms of design than its predecessor, feeling like "a big leap" forward. As well as the improved physical form, she praised its larger screens and the substantial seven-year software update commitment Google has made for this model. One major issue was the price, but a $415 Prime Day discount goes a long way toward addressing that. Hey, did you know? CNET Deals texts are free, easy and save you money. The price reduction here makes this one of the best Google Pixel deals around for anyone not looking to trade an old phone in or get a new line. It's a very solid discount. Why this deal matters Google's foldable phone is the most expensive in the lineup, meaning tech fans have to pay a premium to get one. With this deal, the price is cut substantially, matching the all-time low we saw for the device during the pre-holiday shopping season. It's the most affordable way to get the Pixel 9 Pro Fold right now without a carrier contract.
The Verge
31 minutes ago
- The Verge
Meta illegally collected Flo users' menstrual data, jury rules
A California jury has found that Meta illegally collected user health data from the Flo period-tracking app, violating the state's wiretap law. The verdict concludes a lawsuit filed against Flo, Google, Meta, and app analytics company Flurry in 2021, in which Flo app users accused the companies of collecting their private menstrual health data without consent for targeted advertising. While Flo promised to keep users' sensitive reproductive health information private, the lawsuit alleged that Flo allowed Google and Meta to eavesdrop on in-app communications between November 2016 and February 2019, violating California's Invasion of Privacy Act. The cases against Flo, Google, and Flurry were resolved through undisclosed settlements before the trial, leaving Meta as the only remaining defendant. The jury reached a verdict on Monday that there was a 'preponderance' of evidence showing Meta had 'intentionally eavesdropped on and/or recorded conversations using an electronic device,' unbeknownst to Flo app users. While financial damages have yet to be decided, each violation of the California Invasion of Privacy Act can result in a penalty of $5,000, with the lawsuit filed on behalf of 'millions' of Flo users. 'This verdict sends a clear message about the protection of digital health data and the responsibilities of Big Tech,' lead trial attorneys Michael P. Canty and Carol C. Villegas said in a statement. 'Companies like Meta that covertly profit from users' most intimate information must be held accountable.' Meta has objected to the verdict and will likely appeal the decision. 'We vigorously disagree with this outcome and are exploring all legal options,' Meta said in a statement reported by TechCrunch. 'The plaintiffs' claims against Meta are simply false. User privacy is important to Meta, which is why we do not want health or other sensitive information, and why our terms prohibit developers from sending any.' Posts from this author will be added to your daily email digest and your homepage feed. See All by Jess Weatherbed Posts from this topic will be added to your daily email digest and your homepage feed. See All Health Posts from this topic will be added to your daily email digest and your homepage feed. See All Law Posts from this topic will be added to your daily email digest and your homepage feed. See All Meta Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All Policy Posts from this topic will be added to your daily email digest and your homepage feed. See All Science Posts from this topic will be added to your daily email digest and your homepage feed. See All Tech
