From CNBC: 2024-04-25 20:07:20

Microsoft reported a revenue increase of about 17% year over year, reaching $61.86 billion, beating Street estimates. Earnings per share rose by 20% to $2.94, surpassing expectations.

The company is a core provider of productivity tools like Office 365, as well as a key player in the artificial intelligence sector with significant investments in OpenAI and AI services.

Azure revenue growth exceeded investor expectations, with a 31% increase year over year, outperforming competitors like Google Cloud. Microsoft emphasized share gains in Azure due to the growing number of customers using their AI solutions.

Revenue growth was driven by Office 365 subscriptions, with over 80.8 million Microsoft 365 consumer subscribers. Windows OEM revenue grew by 11%, supported by an increasing demand for Windows 365.

Management is focused on maintaining cost efficiency and driving investment in cloud and AI infrastructure. Microsoft’s guidance for fiscal year 2024 indicates double-digit revenue growth with increased operating margins. Operating expenses are expected to rise in fiscal year 2025.

Microsoft’s share price surged more than 4% in after-hours trading following the earnings report, reaching about $418 per share. The company’s strong performance across all segments and exceeded guidance contributed to the positive investor response.



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