- Generally, Microsoft’s revenue is up, with AI tools pushing it forward
- Annual revenue driving for its AI business has increased by 175% yoy
- Redmond opened two new data center regions last quarter
Microsoft revenue increased a very healthy 12% year-over year in the last three months of 2024, bringing the total quarterly figures to $ 69.6 billion and exceeded previous analyst expectations of $ 68.8 billion.
In the announcement, CEO Satya Nadella noted that its AI company’s annual revenue run now stands at $ 13 billion, an increase of 175% year-over-year.
“We are innovating across our tech stacks and helping customers lock the full ROI from AI to capture the huge opportunity ahead,” Nadella said.
Microsoft -income supported by AI
CFO Amy Hood confirmed that Microsoft Cloud revenue for the past quarter rose 21% year to year to $ 40.9 billion. The key to its success has been the growing demand for AI tools and data centers.
Among the AI height points in its fiscal second quarter is copilot in Excel with Python, the launch of Microsoft Places, LinkedIn upgrades and two new data center regions launch -New Zealand North and Taiwan North.
In a talk about the earnings call, Nadella added: “We have more than doubled our total data center capacity in the last three years.”
Microsoft 365 Consumer Cloud revenue grew by 8%, with its commercial counterpart that saw a growth of 16%, with companies that want to invest in connected services driven by artificial intelligence.
Significant double -digit growth is largely responsible for Microsoft’s recent financial success, but other areas of the company also saw smaller upticks. Its Windows OEM and Devices Revenue increased by 4%, while the Xbox content and service revenue increased by 2%, indicating slow but steady consumer interest.
Although the printing of Windows 10 is set to see consumer costs rise when it comes to hardware and software updates, some personal customers have been left with a bitter taste in the mouth after Microsoft 365 subscriptions became more expensive this month. Some Australian customers see price increases of up to 46%.
