Microsoft just reported its effects for the third quarter of fiscal year 24, which ended March 31, 2024. The quarter saw strong earnings increases (up 17%), consistent with earnings source (up 23%), net earnings source (up 20%) and diluted earnings consistent with equity (up 20%). The tech giant exceeded industry expectations in several key areas, adding a consistent revenue stream and consistent gains with participation.
Microsoft has posted strong numbers across the board, largely driven by the developing demand for AI. “Microsoft Copilot and Copilot Stack are orchestrating a new era of AI transformation, driving better business outcomes across roles and industries,” said Satya Nadella, CEO of Microsoft.
Microsoft highlighted key takeaways from its quarter:
The company’s steady revenue source of $12. 5 billion beat industry expectations of $12. 1 billion, according to FactSet and Forbes. Percentage-consistent gains also beat expectations of $2. 94 consistent with the percentage, compared to the expected $2. 82 consistent with the percentage.
Game revenue was up 51% in the quarter, with much of that expansion coming from the addition of Activision Blizzard’s earnings. Microsoft officially acquired Activision Blizzard after a lengthy legal battle. Once the deal closes, Microsoft’s peak earnings for the recent quarter are comparable. year-over-year to a quarter that didn’t come with Activision Blizzard’s earnings.
AI is one of the technological topics. So, it’s no surprise that a company that has invested billions of dollars in AI would see solid monetary results. Microsoft is integrating AI into many of its services, but Microsoft gets a giant component of its profits from cloud computing and power services. As demand for AI increases, so will Microsoft’s profits. The growing interest in AI is also having an impact, such as the fact that other people are looking to buy new computers so they can use the newest features of AI.
This is the first time AI has led Microsoft to exceed expectations. The company had its most successful quarter on record in the fourth quarter of FY23, and AI generated much of that revenue.
Productivity and business process gains of $19. 6 billion, an increase of 12% (an increase of 11% in constant currency), with the following highlights:
Intelligent Cloud profit totaled $26. 7 billion, an increase of 21%, with the following highlights:
More Personal Computing Profits: $15. 6 billion, up 17%, with the following highlights:
Sean Endicott brings nearly a decade of delight covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now leads our news coverage. If you have a tip or app to check out, tap on sean. endicott@futurenet. com.
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