Microsoft reported a strong performance in its cloud business, with Azure growing by 40% in the March quarter, surpassing the company's projections. This growth comes as Microsoft aims to leverage record investments in AI infrastructure to enhance its financial outcomes.
Overall revenue rose 18% to $82.9 billion, exceeding analyst predictions of $81.4 billion. Earnings per share increased by 23% to $4.27, also higher than the anticipated $4.06.
Additionally, Microsoft disclosed that its AI business has achieved an annual revenue run rate of $37 billion, marking a remarkable 123% increase from the previous year. The company also reported a decline in capital expenditures to $31.9 billion, reflecting adjustments in data center construction and hardware delivery schedules.
In specific segments, the Intelligent Cloud division, which includes Azure, grew by 30% to $34.7 billion, nearly matching the $35 billion reported by the Productivity and Business Processes segment. Meanwhile, revenue from the More Personal Computing segment experienced a slight decline of 1% to $13.2 billion.