In comparison to the same period the previous year, Microsoft recorded a 27% increase in profit for the July-September quarter.
Redmond, Washington — In comparison to the same period the previous year, Microsoft’s profit for the July–September quarter increased by 27%, driven mostly by growth in its cloud computing segment, where the company has concentrated its expenditures on artificial intelligence.
Wall Street was not expecting the corporation to generate a quarterly net income of $22.29 billion, or $2.99 per share.
The software company, headquartered in Redmond, Washington, reported $56.52 billion in revenue for the quarter, exceeding forecasts and increasing 13% over the previous year.
Microsoft was predicted by FactSet Research’s poll of analysts to generate $2.65 per share on $54.52 billion in revenue. According to current analyst projections, Microsoft is expected to generate $58.67 billion in sales for the October–December quarter.
To increase customer productivity, the software business is “rapidly infusing AI across every layer of the tech stack,” according to CEO Satya Nadella in a prepared statement.
The largest gain was seen in Microsoft’s cloud-focused business segment, which saw a 19% increase from the same period last year to $24.26 billion for the three months that ended on September 30.
Its Office email suite and other workplace products are part of its productivity business division, which saw a 13% increase in revenue to $18.59 billion during the quarter.
At $13.67 billion, its computing business—headed by the Microsoft Windows division—grew by 3%. Microsoft’s Xbox video games and services are included in this category. The business reported a 13% gain in revenue for the quarter, but it did not disclose the performance of Xbox console sales.
With its recent $69 billion acquisition of Activision Blizzard, the massive California video game company behind popular titles like Call of Duty, Microsoft seeks to attract more players to its Xbox division.
After hours, Microsoft Corp.’s stock rose almost 4% as a result of the findings’ announcement.