After Tesla and Meta, it was Microsoft’s turn this Thursday, coinciding with the announcement of results from Alphabet, another firm in the select group of the Magnificent Seven. The Bill Gates-founded company, which beat earnings in the previous quarter, has rolled out an artificial intelligence-focused strategy that has raised high expectations among operators. In this sense, Microsoft clearly managed to beat estimates.
The Satya Nadella-led firm reported results for the third quarter of the current fiscal year. Big Tech received revenue of $61.9 billion.
, exceeding market expectations of 60.8 billion, representing 17% year-on-year growth. Likewise, the North American company recorded earnings of $2.94 per share, beating experts’ estimates of $2.82 per share.
This increase is largely due to the fact that Azure revenue grew by 31% compared to experts expected 30%. One of the factors behind this growth is the promotion of Surface models to the market with access to the Copilot chatbot designed for small businesses. It’s a coup for Microsoft, which has gone all out to boost those sales by hiring Mustafa Suleiman, one of the founders of the DeepMind artificial intelligence lab, to lead the Bill Gates-founded company’s artificial intelligence department.
Collectively, the Intelligent Cloud divisions, which include Azure, Windows Server, Nuance and GitHub, recorded revenue of $25.71 billion. an increase of 21% compared to $26.26 billion estimated by experts. All this has sparked satisfaction among investors, helping Microsoft shares rise more than 4% in after-hours trading.
Regarding the video game sector, the company said increase your income by 55%, thanks to the purchase of Activision. The firm, acquired last year, generated $1.97 billion in revenue and Xbox content and services revenue soared 62%. And all this despite the fact that console sales fell by 31% this year.