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Microsoft’s third calendar quarter profit was the strongest in the company’s 50-year history, as the Washington-based computing giant enjoys a leap forward from next-generation innovations in generative artificial intelligence. did.
Microsoft CEO Satya Nadella will speak in May.
AFP (via Getty Images)
important facts
Microsoft reported record earnings of $3.30 per share and net income of $24.7 billion in its earnings report Wednesday afternoon, according to FactSet, compared to analysts’ average estimates of $3.10 EPS and $23.2 billion in net income. It is said to have exceeded $1 billion.
The company brought in $65.6 billion in revenue for the three months ended Sept. 30, beating expectations of $64.6 billion and the previous quarter’s record $64.7 billion.
Revenue from Microsoft’s cloud computing service Azure rose 33% year-over-year, beating forecasts for 28.6% growth for Azure, Microsoft’s most public-facing generative AI initiative.
Microsoft stock rose 2% in after-hours trading.
Main background
Microsoft’s report is the latest in a busy week of earnings, following Google’s Tuesday announcement and fellow tech giants Amazon and Apple’s Thursday afternoon frontline reports. This quarter, the first quarter of Microsoft’s 2025 fiscal year, is also the first quarter since the company adjusted how its business units report results, and Shuffle analysts say that Amazon’s enterprise cloud computing service, which competes with Azure, It said it should better reflect competition from Web Services. But Bernstein analyst Mark Shmulik predicted the report could cause “confusion” among investors as expectations for Microsoft’s broader business are readjusted. That’s a change. Microsoft is one of the world’s most profitable companies, with net income of $88 billion in its most recent fiscal year, second only to Apple and Berkshire Hathaway among U.S. companies.
big number
87%. That’s how much Microsoft stock has risen over the past two years through Wednesday’s close, outperforming the S&P 500 and rival Apple by 54% and 50%, respectively, according to FactSet data that includes reinvested dividends. .
