Microsoft tops estimates as Azure passes $100 billion annually

Ina Fried

Illustration: Annelise Capossela/Axios

Microsoft on Wednesday reported quarterly revenue and earnings that beat Wall Street expectations, while announcing that annual Azure revenue has surpassed $100 billion.

Why it matters: Microsoft got an early AI lead through its OpenAI partnership but is now broadening its strategy to rely on a mix of in-house and third-party models.

By the numbers: Microsoft said it earned $35.8 billion, or $4.81 per share, on revenue of $90 billion.

Those results included a $3.2 billion gain from its stake in Anthropic, which increased per-share earnings by 33 cents. Meanwhile, Microsoft noted that per-share earnings would have been 7 cents lower if it included its stake in OpenAI.
Analysts had been projecting revenue of $86 billion, with per-share earnings of about $4.24, per Yahoo Finance.

Zoom in: Microsoft's cloud revenue reached $59.3 billion for the quarter, up 27% from a year ago.

LinkedIn revenue increased 12%.
Revenue from Windows and devices dropped 7% from the prior year, while Xbox services and content revenue was down 10%.

What they're saying: "We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results," CEO Satya Nadella said in a statement.

What we're watching: The company is due to give its financial outlook for the coming quarter on a conference call with analysts later today.

This story is developing.

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Microsoft tops estimates as Azure passes $100 billion annually

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