Technology giant Microsoft reported robust quarterly earnings on Wednesday, with revenue rising 13 percent year-on-year to $70.1 billion, propelled by strong growth in its cloud computing and artificial intelligence businesses.
The results exceeded analyst expectations and pushed Microsoft’s share price up by over five percent in after-hours trading.

The company’s net profits rose 18 percent to $25.8 billion compared to the same period last year. Microsoft Cloud revenue reached $42.4 billion, a 20 percent increase, which Chief Financial Officer Amy Hood attributed to sustained demand for the company’s “differentiated offerings.”

Microsoft’s Intelligent Cloud segment posted $26.8 billion in revenue, marking a 21 percent rise, while revenue from Azure and other cloud services jumped 33 percent, reflecting growing adoption of the company’s cloud platforms.
The Productivity and Business Processes division, which includes Office 365 and LinkedIn, brought in $29.9 billion, up 10 percent, AFP reports.

A pioneer in the AI race, Microsoft has invested heavily in artificial intelligence since the launch of ChatGPT in 2022. The company said in January it planned to invest about $80 billion in AI infrastructure this fiscal year.

Microsoft also announced changes to its partnership with OpenAI, saying it would no longer be the exclusive provider of the startup’s computing power.

During the quarter, the company returned $9.7 billion to shareholders through dividends and share buybacks.

As Microsoft celebrates its 50th anniversary this year, investors remain keenly focused on the company’s outlook amid concerns that high tariff policies under President Donald Trump’s administration could impact US multinationals.