Updated on October 24, 2023, 04:14 PM EDT
top line
Microsoft beat expectations in its earnings report Tuesday afternoon, as the Redmond, Washington-based tech giant continues to cash in on the artificial intelligence craze.
Key facts
Microsoft generated $56.5 billion in total sales in the quarter ended Sept. 30, well above analysts’ consensus estimates of $54.5 billion, according to FactSet.
This figure was 13% higher than the same period last year and broke the previous quarter’s record of $56.2 billion in revenue.
Top-line growth also beat expectations: Microsoft’s $2.99 earnings per share beat estimates of $2.65 and came in at $2.69 last quarter.
The strong earnings came as the development of its artificial intelligence cloud unit increased to $24.3 billion, showing year-over-year growth of about 20 percent.
Shares of Microsoft rose about 5 percent to close to $350 in after-hours trading.
Key background
Microsoft is the second most valuable company in the world after Apple, thanks to its market value of almost $2.5 trillion. Shares of the Washington-based company are up 38 percent this year, leading a massive tech boom. Much of Microsoft’s gains in 2023 came amid growing investor interest in AI, and in particular generative AI, a move that was fueled by Microsoft-backed startup OpenAI’s launch of ChatGPT last November. Microsoft’s most tangible foray into AI is with its Azure business cloud, though next month it will introduce a subscription-based AI assistant for Microsoft 365 users.
What to watch
In addition to sharing more information about Microsoft’s AI efforts, the company’s next earnings report will also present for the first time results from Activision Blizzard, the video game giant Microsoft acquired for $69 billion in a deal that closed earlier this month. did
Read more
follow me twitter. Send me a safe tip
#Microsoft #earnings #Shares #rise #earnings #rise
Image Source : www.forbes.com