Microsoft on Tuesday reported a 10% rise in quarterly profit as it sought to maintain its position as a leader in artificial intelligence technology.
The software giant said its fiscal fourth-quarter profit was $22 billion, or $2.95 a share, slightly above analysts’ expectations of $2.94 a share.
The company reported revenue of $64.7 billion between April and June, up 15% from last year. Analysts polled by FactSet Research expected revenue to reach $64.4 billion.
Microsoft’s growth has been driven by its cloud computing business, which saw quarterly revenue rise 19% to $28.5 billion. That was still lower than some analysts expected, sending the stock down about 5% in after-hours trading on Tuesday.
The Redmond, Wash.-based company does not specifically report revenue from its AI products but said it has integrated the technology into all of its business units, particularly its Azure cloud computing contracts but increasingly its workplace software and other products. Much of its generative artificial intelligence technology is part of a multibillion-dollar investment in OpenAI, the maker of ChatGPT.
Revenue from Microsoft’s productivity services, such as its Office suite of products, grew 11% to $20.3 billion.
Microsoft’s personal computing business, centered on Windows operating system licensing, generated revenue of US$15.9 billion in the quarter, a 14% increase from last year.
CEO Daily provides the critical context news leaders in the business world need to know. Every weekday morning, more than 125,000 readers trust CEO Daily to get insights on the C-suite and beyond. Subscribe now.
