Microsoft’s Cloud and AI Business Drives Strong Quarterly Performance
Microsoft reported a significant 18% increase in quarterly profits, driven by its cloud computing and artificial intelligence business. The tech giant achieved $70.1 billion in sales for the January-March quarter, exceeding Wall Street expectations. The company’s net income reached $25.8 billion, or $3.46 per share, surpassing analysts’ predictions of $3.22 per share.
CEO Satya Nadella attributed the company’s strong performance to the growth of its cloud business, which generated $26.8 billion in revenue. “Cloud and AI are essential inputs for every business to expand output, reduce costs, and accelerate growth,” Nadella stated. The personal computing unit also saw a 6% revenue increase, driven by laptop business and Xbox services.
Despite facing challenges in the tech sector amid economic uncertainty, Microsoft’s results pleased investors, causing the company’s stock to rise over 6% in after-hours trading. The cloud computing business segment experienced 21% revenue growth, reaching $26.8 billion and beating Wall Street projections.
Microsoft’s performance comes during a period of turbulence in the tech industry, partly due to the return of President Donald Trump to the White House and the subsequent market fluctuations. The company’s stock price has dropped nearly 8% since Trump’s inauguration but showed positive movement following the earnings report.
