Microsoft Boosts Sales by 16%

Microsoft (NASDAQ:MSFT) reported a 16% increase in quarterly sales, reaching $65.6 billion, while attempting to assure investors that its significant investments in artificial intelligence are yielding results.

CEO Satya Nadella stated during a call with analysts that AI-related products are on track to contribute approximately $10 billion to the company’s annual revenue, calling it "the fastest business to reach this milestone in our history."

The software maker also reported an 11% increase in quarterly profit, rising to $24.7 billion or $3.30 per share, exceeding Wall Street expectations for the July-September period. Analysts surveyed by FactSet Research had expected Microsoft to report revenues of $64.6 billion and earnings of $3.10 per share.

While Microsoft has not yet officially reported revenue from its AI products, it claims to be integrating the technology, including its AI assistant Copilot, across all business segments, particularly with Azure cloud computing contracts. The productivity business segment, which includes Microsoft’s Office email suite and other workplace products, led quarterly sales with a 12% increase, reaching $28.3 billion.

Microsoft's cloud-focused business segment experienced a 20% growth compared to the same period last year, reaching $24.1 billion during the three months ending September 30. The personal computing segment, led by Windows, grew by 17% to $13.2 billion, largely driven by the Xbox video game business, bolstered by Microsoft’s acquisition of gaming giant Activision Blizzard a year ago.