2023-10-25 04:50:16
Archive.. Microsoft logo
Microsoft’s third-quarter results exceeded Wall Street estimates as its cloud computing and PC business grew amid customer enthusiasm for its artificial intelligence products.
Microsoft has not yet launched most of the products it developed with OpenAI, the creator of the chatbot (GBT Chat), following initially supporting it financially and cooperating with it.
But enthusiasm among corporate technology buyers for features such as the ability to summarize piles of email into a few bullet points or help write computer code quickly helped the company’s revenue rise 13 percent to $56.5 billion in the quarter ended September 30.
LSEG data indicates that the American technology giant’s revenues exceeded analysts’ estimates by reaching $54.52 billion.
“The results indicate that AI products drive sales and actually contribute to overall and bottom-line growth,” said Jesse Cohen, senior analyst at Investing.com.
Microsoft shares jumped 4.2 percent in following-hours trading.
The secret in cloud computing
LSEG data showed that revenues from Microsoft’s Intelligent Cloud unit rose to $24.3 billion, compared to analysts’ estimates of $23.49 billion.
Intelligent Cloud includes the cloud computing platform (Azure), which carries out most of the artificial intelligence work. Azure’s revenues increased by 29 percent, which is higher than the 26.2 percent expected by market research company Visible Alpha.
As for profits, Microsoft said that third-quarter earnings amounted to $2.99 per share, which is higher than analysts’ estimates of $2.65 per share.
Microsoft said search and news revenues increased 10 percent.
Microsoft is working to integrate artificial intelligence into its own products, such as CoPilot, which costs $30 a month for its Microsoft 365 service, which can summarize daily emails in a quick update.
Sales of the Windows operating system and other products in this sector grew to $13.7 billion, compared to analyst estimates of $12.82 billion.
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