Cloud and AI Powered Microsoft's Business Results

In its third fiscal quarter, Microsoft reported strong growth in revenues and profits. The company made a double-digit growth in both segments, once again pulled by Cloud and AI solutions.

Quarterly revenue grew 13% YoY to $70.1 billion, as profits rose to $25.8 billion, 18% up YoY. Operating income was $32.0 billion and increased 16%, while diluted earnings per share were $3.46 and increased 18%.

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, Microsoft chairman and CEO. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year, driven by continued demand for our differentiated offerings,” said Amy Hood, Microsoft EVP and CFO.

Revenue in Productivity and Business Processes was $29.9 billion, up 10%. Simultaneously, revenue in Intelligent Cloud grew 21% to $26.8 billion. More Personal Computing revenue was $13.4 billion, up 6%. In the third quarter, Microsoft returned $9.7 billion to shareholders in dividends and share repurchases.