According to the report, the company's total revenue increased by 18% compared to last year, reaching $77.7 billion. The net profit for the period, i.e., the remaining earnings after all expenses, grew by 12% to $27.7 billion.
The main drivers of this strong performance were the company’s cloud technologies and artificial intelligence (AI) sectors. Microsoft stated that the profit could have been $3.1 billion higher, but the company invested this amount in OpenAI, its AI collaboration partner.
Most of the company’s revenue came from two major segments. The Intelligent Cloud division saw the highest growth (28%) and contributed $30.9 billion in revenue, including services like Azure, GitHub, and Windows Server. The highest revenue-generating segment was Productivity and Business Processes, bringing in $33 billion, which includes Office 365, Copilot integrations, and LinkedIn.
The remaining $13.8 billion of total revenue came from the More Personal Computing segment, which covers Windows OS licenses, Surface devices, Xbox consoles, and gaming services. Interestingly, despite these positive results, the company’s shares fell about 2.96% in premarket trading, closing at $525.5 per share.
