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Microsoft’s quarterly revenue rose 16 per cent, driven by demand for cloud computing amid a boom in adoption of artificial intelligence tools.
Revenue for its fiscal first quarter was $65.6bn, beating analysts’ expectations for $64.5bn, according to a filing on Wednesday. Net income increased 11 per cent to $24.7bn in the three months through to the end of September, exceeding the average estimate of $23.1bn.
“AI-driven transformation is changing work . . . across every role, function and business process,” said chief executive Satya Nadella. He said the company was “winning new customers as we help them apply our AI platforms”.
Sales at Microsoft’s closely watched cloud division, its biggest revenue driver that includes its Azure cloud computing platform, also beat forecasts, climbing 22 per cent from a year ago to $38.9bn.
Microsoft has been one of the main beneficiaries of the mainstream adoption of AI, with surging demand for its Azure data centres and enthusiasm about its partnership with market leader OpenAI propelling it to become the world’s third-most valuable public company.
Its shares, which are up about 16 per cent year to date, rose 0.8 per cent in after-hours trading. At $3.3tn, Microsoft’s valuation trails only those of Apple and Nvidia.
Rival Google’s stock price rose 4 per cent after it posted similarly strong growth in its cloud business on Tuesday.
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