Microsoft’s income beats estimates on powerful cloud demand from AI boom

Microsoft’s quarterly income rose 16 per cent, driven by demand for cloud computing amid a boom in adoption of artificial intelligence tools.

income for its budgetary first quarter was $65.6bn, beating analysts’ expectations for $64.5bn, according to a filing on Wednesday. earnings increased 11 per cent to $24.7bn in the three months through to the complete of September, exceeding the average approximate of $23.1bn.

“AI-driven transformation is changing work . . . across every role, function and business procedure,” said chief executive Satya Nadella. He said the business was “winning recent customers as we assist them apply our AI platforms”.

Sales at Microsoft’s closely watched cloud division, its biggest income driver that includes its Azure cloud computing platform, also beat forecasts, climbing 22 per cent from a year ago to $38.9bn.

Microsoft has been one of the main beneficiaries of the mainstream adoption of AI, with surging demand for its Azure data centres and thrill about its collaboration with economy chief OpenAI propelling it to become the globe’s third-most valuable community business.

Its shares, which are up about 16 per cent year to date, rose 0.8 per cent in after-hours buying and selling. At $3.3tn, Microsoft’s assessment trails only those of Apple and Nvidia.

Rival Google’s distribute worth rose 4 per cent after it posted similarly powerful growth in its cloud business on Tuesday.