Microsoft Results News Today

The stellar earnings reports from both tech giants assuaged concerns regarding the profitability of their significant AI investments, following Meta's tepid forecast.

Microsoft Corp beats Q2 revenue estimates with 18% growth driven by new AI features attracting customers to its cloud and Windows services. Microsoft shares fell 1% in after-hours trading but climbed 57% last year. Revenue at Microsofts Intelligent Cloud unit, including Azure, grew 20% to $25.9 billion.

Microsoft: "Weve moved from talking about AI to applying AI at scale," CEO Satya Nadella said in a statement. "By infusing AI across every layer of our tech stack, were winning new customers and helping drive new benefits and productivity gains across every sector."

Microsoft reported strong sales in its latest quarter, with $56.5 billion in sales, up 13% from a year earlier. Profit reached $22.3 billion, up 27%, beating analyst expectations. The companys investments in generative artificial intelligence (AI) were starting to boost sales, particularly in the cloud computing sector.

Techs propping up of the market had raised concerns that the gains could be on somewhat shaky ground if companies couldnt deliver actual results.

Apple last month became the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets and expectations for more moderate US interest rate hikes.

The U.S. dollar declined against its major counterparts in the European session on Wednesday, as better-than-expected earnings reports from tech giants Microsoft and Alphabet lifted risk sentiment.

In the September quarter, Microsoft Cloud again exceeded $25 billion in revenue, up 24 per cent year-over-year.

Quarterly reports from Microsoft, Alphabet and others added to the day's upbeat tone.

Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform.