Microsoft reported strong financial results for the quarter ended June 30, with net profit rising 31 per cent year-on-year to USD 35.8 billion, while revenue increased 18 per cent to USD 90 billion, driven by sustained demand for its cloud computing and artificial intelligence (AI) services.
The technology company said operating income rose 18 per cent to USD 40.6 billion. Diluted earnings per share (EPS) increased 32 per cent year-on-year to USD 4.81 on a GAAP basis.
On a non-GAAP basis, excluding the impact of investments in OpenAI, Microsoft reported net income of USD 35.3 billion, up 22 per cent, while diluted EPS rose 23 per cent to USD 4.74.
The company said its quarterly performance benefited from several one-time items, which together added USD 0.27 to diluted EPS compared with the guidance issued on April 29.
These included a USD 3.2 billion gain from its investment in Anthropic and lower-than-expected costs related to its Voluntary Retirement Program. The gains were partially offset by severance expenses and impairment charges in its Xbox business.
Microsoft said that after adjusting for these factors, it exceeded its guidance on revenue, operating income and diluted EPS.
Chairman and Chief Executive Officer Satya Nadella said the company continues to help customers create business value through AI.
He added that Azure generated more than USD 100 billion in annual revenue for the first time, while Microsoft 365 Copilot surpassed 30 million paid seats, highlighting increasing adoption of the company’s AI products.
Chief Financial Officer Amy Hood said Microsoft ended the fiscal year on a strong note, with Microsoft Cloud revenue rising 27 per cent year-on-year to USD 59.3 billion during the quarter.
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