Microsoft’s cloud growth accelerates, and so too does the spending
Software giant is one of the tech industry’s largest spenders in cloud computing.
Microsoft's cloud division experienced a substantial 48% increase in growth during the first quarter, outperforming analysts' predictions and signaling confidence from investors. The company reported a revenue of $92.3 billion, a 19% increase compared to the previous year, and a profit of $36.6 billion, surpassing analyst expectations.
Its Azure cloud business was the standout performer, driving the overall growth. Microsoft's shares saw an initial post-market increase of more than 4%, reflecting positive market sentiment. This surge in cloud growth comes amid significant spending by tech giants, including Microsoft, Amazon, Google, and Meta Platforms, to meet the demands of artificial intelligence (AI) compute requirements.
The company's capital expenditures for the quarter were reported at $45.2 billion, slightly higher than the prior quarter but lower than analysts' estimates.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
