Microsoft posts record revenue for a tenth straight quarter
US tech company Microsoft reported quarterly revenue of $92.3 billion, a record for the tenth consecutive quarter. Growth was driven mainly by its Microsoft Cloud business.
US technology company Microsoft reported its latest quarterly results on Wednesday, with revenue of $92.3 billion, up 19% from a year earlier. It is the tenth quarter in a row in which the company has set a revenue record, showing that demand for cloud services and AI infrastructure continues to bring in substantial income.
Net income reached $36.6 billion, which is 32% higher than a year ago on a GAAP (generally accepted accounting principles) basis. The main driver was Microsoft Cloud, whose revenue rose 30% to $63.9 billion.
New reporting structure
Microsoft now reports its business in two segments: Agents and Infra, and Devices and Consumer. Revenue in the second segment was $15.5 billion, down 3%, with Windows OEM and devices revenue falling 22% from a year earlier.
What makes up cloud revenue
Not all cloud revenue is tied to artificial intelligence. Microsoft 365 contributed nearly $28 billion, while the Azure cloud platform brought in $33.2 billion, which also includes traditional software and SaaS applications run by enterprises. Still, a significant portion came from AI: Microsoft reported $10 billion in revenue from OpenAI. Although OpenAI also uses AWS, Oracle and others, it still runs many of its services on Microsoft's cloud. Anthropic also uses Azure.
Commitments and spending
Microsoft's commercial remaining performance obligation rose 73% to $677 billion. This represents future revenue committed under existing contracts with AI labs. To meet those commitments, the company is also spending heavily: capital expenditures exceeded $45.2 billion, another quarterly record.
