Microsoft went into its earnings facing one question: is the vast AI spending working? The numbers said yes, mostly.
Revenue rose 18% to $90bn for the quarter to 30 June, and net income climbed 31% to $35.8bn, the company reported. Microsoft Cloud brought in $59.3bn, up 27%. The shares rose about 2% after hours.
Azure reaccelerated
The figure investors watch is Azure, and it beat. Azure and other cloud services grew 43% year on year, ahead of the 40% expected and up from 40% the quarter before, CNBC reported. For the full financial year, Azure passed $100bn in revenue for the first time.
That acceleration matters because Microsoft has been short of computing power. It has been so stretched for capacity that it has had to ration chips between Azure customers, its own research, and Copilot. Growing 43% through that squeeze is the quarter’s real signal.
