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Microsoft’s Strong Cloud and AI Performance Boosts Earnings

Microsoft’s Strong Cloud and AI Performance Boosts Earnings

Microsoft ( (MSFT) ) has released its Q1 earnings. Here is a breakdown of the information Microsoft presented to its investors.

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Microsoft Corporation, a leading technology company, is renowned for its innovative platforms and tools powered by artificial intelligence, serving a global customer base with a mission to empower individuals and organizations. In its latest earnings report for the quarter ending September 30, 2025, Microsoft posted impressive financial results, driven by strong performance in its cloud and AI sectors. The company reported a revenue increase of 18% to $77.7 billion, with operating income rising by 24% to $38.0 billion. Net income on a GAAP basis was $27.7 billion, marking a 12% increase, while non-GAAP net income rose by 22% to $30.8 billion. Diluted earnings per share also saw significant growth, with GAAP EPS at $3.72, up 13%, and non-GAAP EPS at $4.13, up 23%. A key highlight was the robust growth in Microsoft Cloud, which saw a revenue increase of 26% to $49.1 billion, reflecting strong customer demand. The Intelligent Cloud segment, including Azure and other cloud services, experienced a remarkable 40% revenue increase. Additionally, the Productivity and Business Processes segment grew by 17%, with notable contributions from Microsoft 365 and Dynamics 365. The More Personal Computing segment also saw a modest increase of 4% in revenue. Looking ahead, Microsoft remains optimistic, continuing to invest in AI and cloud technologies to capitalize on future opportunities, as indicated by the management’s positive outlook.

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