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Microsoft Cloud Services Revenue Up

Microsoft Exceeds Expectations in Q3 Due to Cloud Services

Posted on April 29, 2024
Writer: James Miller

Microsoft reported robust fiscal third-quarter earnings, surpassing Wall Street expectations. The tech giant recorded earnings per share of $2.94 on $61.9 billion in revenue, mainly due to its cloud computing and artificial intelligence (AI) services.

Microsoft’s commercial cloud revenue notably reached $35.1 billion, exceeding estimates and highlighting the strength of its cloud sector. CEO Satya Nadella emphasized the pivotal role of Microsoft’s AI offerings, such as Copilot and Copilot stack. These AI services added 7 percentage points to Azure’s growth this quarter, a notable increase from previous quarters.

Looking ahead, Microsoft projects Q4 revenues to be between $63.5 billion and $64.5 billion, slightly below market expectations. Microsoft’s strategic focus on these areas was further underscored by a new $1.1 billion agreement with Coca-Cola to leverage Azure and AI technologies, showcasing its commitment to expanding its enterprises.

The company also continues to make strides in the gaming sector, with the acquisition of Activision Blizzard and the enhancement of Xbox services boosting revenues. 

For more details, check out the full article on Yahoo Finance.

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