Microsoft's Cloud Business Boosts Quarterly Profits by 10%
Microsoft claims a 10% increase in quarterly profits, at US$22 billion. Revenue for the April-June period were $64.7 billion, up 15% from the prior year. The cloud computing segment leads growth, with a 19% increase in quarterly revenue to US$28.5 billion.
The tech giant disclosed that its fiscal fourth-quarter profit totalled $22 billion, or $2.95 per share, slightly exceeding analysts' expectations of $2.94 per share. Furthermore, the corporation reported revenue of US$64.7 billion in April-June, a 15% rise over the previous year and more than the expected US$64.4 billion, according to FactSet Research.
Microsoft's cloud computing sector was the main factor behind its development, with a staggering 19% increase in revenue to US$28.5 billion during the quarter. Despite this strong performance, the data fell somewhat short of some analysts' forecasts, resulting in a 5% drop in the company's price during after-hours trading Tuesday.
Although Microsoft does not provide precise sales data for AI products, it highlights the integration of AI technology throughout all of its business segments. This integration is especially apparent in its Azure cloud computing contracts, as well as its workplace software and other solutions. Microsoft's considerable investments in OpenAI, the ChatGPT developer, have helped to further the company's generative AI capabilities.
Furthermore, revenue from Microsoft's productivity services, including its famed Office suite, increased by 11% to US$20.3 billion. The company's personal computer sector, which focusses on licensing its Windows operating system, generated US$15.9 billion in the quarter, representing a 14% increase over the previous year.
Microsoft reports a 10% rise in quarterly profits, with a profit of US$22 billion.
Revenue for the April-June period reaches US$64.7 billion, up by 15% from the previous year.
Cloud computing division drives growth, with a 19% increase in quarterly revenue to US$28.5 billion.
Source: AP NEWS