Cloud and AI give Microsoft a very strong Q3 result

Reading time icon 2 min. read


Readers help support MSpoweruser. We may get a commission if you buy through our links. Tooltip Icon

Read our disclosure page to find out how can you help MSPoweruser sustain the editorial team Read more

Key notes

  • Microsoft Q3 revenue hit $61.9 billion, up 17% year-over-year.
  • Cloud revenue surged 23% to $35.1 billion, driving overall growth.
  • Productivity and Intelligent Cloud segments saw strong double-digit growth.
Microsoft building

Microsoft’s quarterly sales and profit exceeded expectations, thanks to strong demand for the company’s cloud computing and artificial intelligence products. Just this week, Microsoft announced deals with Coca-Cola and Cognizant.

Revenue for the third quarter, which ended March 31, rose 17% to $61.9 billion, while profit was $2.94 per share. Analysts had expected earnings per share of $2.83 on sales of $60.9 billion.

Microsoft’s Intelligent Cloud segment, which includes the Azure public cloud, grew 21% to $26.71 billion in revenue. Revenue from Azure and other cloud services rose 31%, compared with 30% in the previous quarter.

  • Revenue was $61.9 billion and increased 17%
  • Operating income was $27.6 billion and increased 23%
  • Net income was $21.9 billion and increased 20%
  • Diluted earnings per share was $2.94 and increased 20%

A key driver of Azure’s growth was artificial intelligence (AI). AI-related services accounted for 7% of Azure’s growth, up from 6% in the prior quarter. Microsoft has integrated AI technology from partner OpenAI into its Azure cloud platform.

“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry.” 

Said Satya Nadella, chairman and CEO of Microsoft.

Sales of Microsoft 365, which includes productivity software like Word and Excel, rose 12% to $19.57 billion. The company also saw strong growth in its More Personal Computing segment, which includes the Windows operating system and Xbox video games. Revenue in this segment rose 18% to $15.58 billion.

Microsoft’s stock price rose about 5% in after-hours trading following the earnings release. The company’s shares have gained 6% so far this year.

More here

Leave a Reply

Your email address will not be published. Required fields are marked *