Microsoft Reports 16% Increase in Quarterly Sales, Driven by Cloud and AI Growth

Microsoft has announced a 16% increase in quarterly revenue, reaching $65.6 billion for the quarter ending September 30, 2024. This growth is attributed to strong performance across its cloud services and productivity software segments.

The company’s operating income rose by 14% to $30.6 billion, while net income increased by 11% to $24.7 billion. Diluted earnings per share were reported at $3.30, marking a 10% rise from the previous year.

CEO Satya Nadella highlighted the impact of artificial intelligence (AI) on the company’s growth, stating, “AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process.” He emphasized Microsoft’s efforts to help customers apply AI platforms and tools to drive new growth and operational efficiency.

The Productivity and Business Processes segment, which includes Microsoft 365 and LinkedIn, reported a 12% revenue increase to $28.3 billion. The Intelligent Cloud segment, encompassing Azure and other cloud services, saw a 20% rise in revenue, totaling $24.1 billion. The More Personal Computing segment, which includes Windows and Xbox, experienced a 17% revenue increase to $13.2 billion.

CFO Amy Hood noted the company’s strong execution, stating, “Strong execution by our sales teams and partners delivered a solid start to our fiscal year with Microsoft Cloud revenue of $38.9 billion, up 22% year-over-year.” Microsoft News

These results underscore Microsoft’s strategic focus on AI and cloud computing as key drivers of its continued growth.