Microsoft turned in a solid quarter, beating analysts’ estimates on strong AI and cloud computing performance.
The company reported revenue of $52.9 billion, an increase of 7% over the year-ago quarter. Operating income came in at $22.4 billion, an increase of 10%, and net income was $18.3 billion, an increase of 9%.
CEO Satya Nadella credited the company’s AI and cloud endeavors for boosting the quarter.
“The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing,” said Nadella. “Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”
The company’s Intelligent Cloud revenue came in at $22.1 billion, representing a 16% increase, while server products and cloud services revenue were up 17%. Azure was the big highlight, with it and other cloud services revenue up 27%.
LinkedIn was another bright spot for the company, with revenue increasing by 8%.
“Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
