Microsoft quarterly profits soar on AI and cloud growth
Technology giant Microsoft on Wednesday said its profit soared above expectations in the recently ended quarter, driven by its cloud computing and artificial intelligence (AI) units.
Microsoft reported profit of $27.2 billion on revenue of $76.4 billion, some $29.9 billion of which was brought in by its Intelligent Cloud business.
'Cloud and AI is the driving force of business transformation across every industry and sector,' Microsoft chief executive Satya Nadella said in an earnings release.
'We're innovating across the tech stack to help customers adapt and grow in this new era.'
Microsoft's Azure cloud computing offerings brought in more than $75 billion for the company's fiscal year, which ended on June 30, in an increase of 34 percent from the prior year, according to Nadella.
Microsoft shares jumped about 7 percent in after-market trades that followed release of the earnings figures.
'This was a slam-dunk quarter for Microsoft with cloud and AI driving significant business transformation across every sector and industry,' Wedbush Securities analyst Dan Ives said in a note to investors.
'The company continues to capitalize on the AI Revolution.'
Microsoft is well-positioned to make money as increasing numbers of companies ramp up efforts to take advantage of artificial intelligence in their businesses, according to Ives.
Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry.
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