Financial Performance
reported an 11% increase in profit for the July-September quarter, with a net income of $24.7 billion and earnings per share of $3.30, surpassing expectations.
The company's revenue reached $65.6 billion, a 16% increase from the previous year, driven by growth in its cloud services and the integration of AI across its business segments.
AI Investment and Market Response
Microsoft’s capital expenditure hit $20 billion, focusing on cloud computing and AI, as it aims to expand its data center capacity and invest in AI projects, including a significant investment in OpenAI.
Despite concerns over the return on AI investments, Microsoft’s shares rose in after-hours trading, reflecting investor confidence in the company’s strategic focus on AI and cloud services.