Microsoft Profits Rise 27% on Cloud Computing, AI

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Microsoft Profits Rise 27% on Cloud Computing, AI
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Microsoft on Tuesday reported a 27% increase in profit for the July-September quarter compared to the same time last year, powered by growth in its cloud computing division where it has centered its investments in artificial intelligence.The company reported quarterly net...

Microsoft on Tuesday reported a 27% increase in profit for the July-September quarter compared to the same time last year, powered by growth in its cloud computing division where it has centered its investments in artificial intelligence.

The company reported quarterly net income of $22.29 billion, or $2.99 per share, which beat Wall Street expectations. The Redmond, Washington-based software maker posted revenue of $56.52 billion in the quarter, up 13% from last year, also beating expectations. Analysts polled by FactSet Research expected Microsoft to earn $2.65 per share on revenue of $54.52 billion. Analysts are currently projecting Microsoft will produce revenue of $58.67 billion for the October-December quarter.

CEO Satya Nadella said in a prepared statement that the software company is “rapidly infusing AI across every layer of the tech stack” to drive productivity gains for customers.

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