Microsoft has outperformed expectations in its third quarterly sales, with its revenues and profits rising, spurred by the robust enterprise demand for Microsoft’s AI and cloud solutions. As of March 31st, the tech giant’s Q3 earnings saw a significant increase of 17%, amounting to €57.7 billion ($61.9 billion), and it reported profits of $2.94 per share, as stated in their Thursday announcement. The average prediction by market analysts was $2.83 a share on revenue of $60.9 billion.
With Satya Nadella at its helm, Microsoft has been incorporating AI technology from OpenAI into its entire product range. The move is showing positive results, particularly with customers integrating AI capabilities into their Microsoft Office and Azure cloud services, designed to summarise information, generate new content, or enabling them to create and implement their own AI applications.
Senior Portfolio Manager at Synovus Trust, Dan Morgan, remarked that growth in Microsoft’s specific AI-driven income has become a key factor in its stock performance, with the company well-positioned to excel in the market, particularly in terms of AI.
Microsoft’s Azure services experienced a revenue boost of 31% during this quarter, which surpassed the predicted average of 29%, slightly increasing from the 30% growth it saw in the previous period.
Following these positive results, Microsoft’s stocks appreciably increased by approximately 6% in late trading; earlier, the stocks had finished at $399.04 in New York. Anticipation of boosted sales due to the company’s early introduction of generative AI products also led the stock to increase by 12% over the course of the March quarter. – Bloomberg