Microsoft beats expectations as Azure AI growth drives revenue

Microsoft exceeded quarterly expectations, driven by growth in its AI services, particularly its Azure cloud platform, which provides computing power to businesses. The Washington-based group reported revenue of $92.3 billion, a year-over-year increase. Azure revenue, representing a third of total sales, rose 48% year-over-year, up from 42% in the previous quarter. Online services revenue, including Azure and Office subscriptions, grew 30% to $63.9 billion. Excluding the impact of its OpenAI stake, profit rose 18% to $36.4 billion. The results come two days after Microsoft offered voluntary buyouts to 60,000 employees, over a quarter of its workforce, amid massive AI investment. Equipment spending doubled year-over-year to $39.4 billion, funded by operating revenue without debt, and the company repaid $4.85 billion of debt. Its order backlog reached $677 billion, up 73% year-over-year but flat from June.