Jul 25, 2023 - Technology

AI, cloud computing help Microsoft top quarterly expectations

Ina Fried

Illustration: Shoshana Gordon/Axios

Continued growth in its cloud business and strong demand for generative AI features helped Microsoft's quarterly sales and earnings exceed Wall Street expectations, the software giant said Tuesday.

What they're saying: "Organizations are asking not only how, but how fast, they can apply this next generation of AI to address the biggest opportunities and challenges they face — safely and responsibly,” Microsoft CEO Satya Nadella said in a statement.

By the numbers: Revenue for the three months ended June 30 was $56.2 billion, up 8% from the prior year and more than the $55.5 billion average analysts' estimate.

Net income was $20.1 billion, up 20% from a year ago.
Per-share earnings were $2.69, up 21% and ahead of Wall Street expectations of around $2.55.

Catch up quick: Microsoft has infused generative AI throughout its product line, including its Bing search engine and Edge browser as well as by adding AI-powered "copilots" to Windows, Office and other major software franchises.

Microsoft said last week that it will charge $30 per person per month to businesses that want to use the copilots for Office apps such as Word, Excel and PowerPoint.

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AI, cloud computing help Microsoft top quarterly expectations

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