Microsoft profits climb 24% as AI demand drives cloud growth
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The news: Microsoft’s profits soared in the June quarter as demand for artificial intelligence fuelled a surge in cloud computing revenue.
The numbers: Net income rose 24% to USD27.2 billion ($42.3 billion), or USD3.65 per share, beating expectations. Quarterly revenue increased 18% to USD76.4 billion, ahead of the USD73.9 billion analyst had forecast.
Azure revenue climbed 39%, pushing annual revenue for the cloud unit above USD75 billion for the first time. Shares rose more than 6% in extended trading.
The company’s capital expenditure rose 27% year-on-year to USD24.2 billion as it expanded infrastructure to support growing AI workloads.
Azure now hosts models from OpenAI, xAI, Meta and Mistral, while Microsoft also powers its own AI tools, including further integration of its Copilot assistant into its Edge browser.
The sources: Microsoft, Financial Times, The Wall Street Journal
