REDMOND — Microsoft Corp. mentioned Wednesday that its revenue for the October-December quarter grew 10% from the identical time final 12 months as it really works to capitalize on the massive quantities of cash it has spent to advance its synthetic intelligence know-how.
However whereas its total earnings and income beat Wall Avenue expectations, it barely missed projections for its closely-watched cloud computing enterprise, a centerpiece of its AI efforts.
The corporate reported internet earnings for the quarter of $24.1 billion, or $3.23 per share, beating Wall Avenue expectations of $3.11 per share. The Redmond, Washington-based software program maker posted income of $69.6 billion within the quarter, up 12% from the earlier 12 months, additionally beating expectations.
Analysts polled by FactSet Analysis anticipated Microsoft to generate income of $68.87 billion within the final three months of the 12 months, and at present venture income of $69.81 billion for the January-March quarter.
Gross sales from Microsoft’s cloud-focused enterprise phase grew 19% from the identical time final 12 months to $25.5 billion, which was lower than the $25.83 billion forecast by FactSet analysts.
Its private computing enterprise, led by its Home windows division, remained regular at $14.7 billion.
Microsoft shares dropped barely in after-hours buying and selling Wednesday however have been nonetheless larger than Monday, when the tech big was hit by a broader tech inventory sale brought on by a frenzy over the brand new ChatGPT competitor developed by Chinese language tech startup DeepSeek.
Microsoft is a detailed accomplice of ChatGPT maker OpenAI and in addition sells its personal AI chatbot providers, branded as Copilot. A part of what drove the Wall Avenue panic this week was concern that the startup’s claims that it was catching as much as U.S. tech titans on a fraction of their price range.
Constructing and working AI programs is dear, and Microsoft has mentioned it plans to spend $80 billion this 12 months because it expands its world community of energy-hungry computing facilities and provides them with specialised chips to coach and run AI fashions.