Microsoft announced a 10% increase in quarterly profits, reaching $22 billion, or $2.95 per share, slightly surpassing analyst expectations. The company's revenue for the April-June period stood at $64.7 billion, a 15% increase from the previous year, exceeding the $64.4 billion anticipated by analysts.
The growth was primarily driven by Microsoft's cloud computing business, which saw a 19% increase in revenue to $28.5 billion. Despite this positive performance, the figures fell slightly short of some analysts' projections, resulting in a 5% drop in the company's stock during after-hours trading.
While Microsoft does not disclose specific revenue figures for its artificial intelligence (AI) products, it has integrated AI technology across all its business segments. This integration is particularly evident in its Azure cloud computing contracts and increasingly in its workplace software and other offerings. The company has heavily invested in OpenAI, the developer of ChatGPT, to develop generative AI technology.
Revenue from Microsoft's productivity services, including its Office suite, increased by 11% to $20.3 billion. Additionally, the company's personal computing business, which focuses on licensing the Windows operating system, generated $15.9 billion in revenue for the quarter, marking a 14% increase from the previous year.
