Microsoft quarterly revenue up 18%, beating estimates

The news: Tech giant Microsoft beat analysts' estimates for the December quarter, reporting revenue of USD62 billion ($94 billion), up 18% from a year earlier.

The numbers: Microsoft's net income jumped 33% to USD21.9 billion for the quarter, while the company's cloud business Azure grew 30%. Diluted earnings per share increased 33% to USD2.93. Microsoft shares have soared nearly 70% over the last year, compared to a Nasdaq Composite Index rise of less than 40%.

The context: Microsoft's strong results come a week after its market capitalisation climbed above USD3 billion, making it only the second company after Apple to pass that milestone. The company's performance has been buoyed by continuing interest in its cloud AI services as part of its partnership with OpenAI, the company behind ChatGPT. However, the last year has also seen Microsoft make significant layoffs, including cutting 1,900 videogaming staff after completing its acquisition of Activision Blizzard.