Microsoft’s Cloud and AI Business Drives Quarterly Sales to $70.1 Billion
Microsoft’s cloud computing and artificial intelligence business delivered a strong performance in the January-March quarter, helping the company achieve $70.1 billion in sales and an 18% boost in profits. This news provided a welcome relief for investors during a turbulent period for the tech sector and U.S. economy. The Redmond, Washington-based software giant reported a quarterly net income of $25.8 billion, or $3.46 per share, exceeding Wall Street expectations of $3.22 per share.
The company’s revenue for the third fiscal quarter rose 13% from the same period last year to $70.1 billion, surpassing analyst expectations of $68.44 billion as polled by FactSet. Microsoft CEO Satya Nadella attributed the strong quarterly performance to the growth of the company’s cloud business. The cloud unit generated $26.8 billion in revenue, beating expectations of $26.17 billion. “Cloud and AI are essential for every business to expand output, reduce costs, and accelerate growth,” Nadella stated.
In addition to cloud success, Microsoft’s personal computing unit, which includes its laptop business and Xbox services, saw a 6% increase in revenue. During a call with investors, Nadella noted that demand for cloud and artificial intelligence remained robust. He emphasized that Microsoft continually adjusts its investments based on efficiency improvements in computing systems and customer preferences. “We want to ensure we’re accounting for the latest and greatest information,” he explained.
Microsoft’s cloud computing business segment reported 21% revenue growth to $26.8 billion, exceeding Wall Street projections. The personal computing business, centered around Windows operating system and fees from computer manufacturers, generated $13.4 billion in revenue for the quarter, a 6% increase from the first three months of last year. Despite facing tariff uncertainty, Microsoft’s strong earnings report sent its stock price up more than 6% in after-hours trading.
