Cloud, business software and AI push sees Microsoft results hit new high

1 week ago

(Image credit: Future)

Microsoft’s first-quarter figures for its 2025 financial twelvemonth person exceeded expectations, but alternatively than having a affirmative effect connected stock prices, banal is down complete early concerns.

Q1 2025 gross stood astatine $65.6 billion, marking a 16% summation and a $1 cardinal jump complete anterior Wall Street projections. Operating income was besides up by 14% to $30.6 billion.

However, contempt nan beardown performance, institution banal declined 4% successful after-hours trading, apt arsenic a consequence of slower-than-anticipated maturation projections for nan adjacent three-month period.

Microsoft conscionable had a beardown quarter, but nan adjacent mightiness not beryllium truthful good

Company CEO Satya Nadella commented: “AI-driven translator is changing work, activity artifacts, and workflow crossed each role, function, and business process,” indicating that Redmond’s unreality efforts are responsible for overmuch of nan ongoing growth.

“Strong execution by our income teams and partners delivered a coagulated commencement to our fiscal twelvemonth pinch Microsoft Cloud gross of $38.9 billion,” said CFO Amy Hood. Microsoft Cloud’s $38.9 cardinal successful quarterly gross marks a sizeable 22% year-over-year increase.

Besides its halfway unreality division, Microsoft noted that LinkedIn’s gross had accrued 10% and Microsoft 365 Commercial products and unreality services had grown by 13% – these are 2 areas of nan business that person been infused pinch artificial intelligence successful caller months, pursuing billions of dollars of finance by nan firm.

However, contempt predicting continued maturation to nan tune of betwixt $68.1 cardinal and $69.1 cardinal successful nan adjacent financial quarter, shareholders person been stripped of assurance that nan tech elephantine will proceed to present specified beardown performance, starring banal to decline. Analysts had antecedently projected quarterly gross of $69.83 cardinal – much than nan precocious extremity of Microsoft’s latest expectation.

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With respective years’ acquisition freelancing successful tech and automotive circles, Craig’s circumstantial interests dishonesty successful exertion that is designed to amended our lives, including AI and ML, productivity aids, and smart fitness. He is besides passionate astir cars and nan decarbonisation of individual transportation. As an avid bargain-hunter, you tin beryllium judge that immoderate woody Craig finds is apical value!

Source Technology