Microsoft (MSFT) has reported first-quarter financial results that topped Wall Street’s forecasts.
The Seattle-based technology giant announced earnings per share (EPS) of $4.27 U.S., which was ahead of the $4.06 U.S. consensus expectation of analysts.
Revenue in the period totaled $82.89 billion U.S., which beat the $81.39 billion U.S. forecast on Wall Street. Sales were up 18% year-over-year.
Microsoft also reported $31.9 billion U.S. in first-quarter capital expenditures, which was up 49% from a year ago but less than the $34.9 billion U.S. expected among analysts.
The company’s gross margin of 67.6% was the narrowest since 2022, as depreciation costs mounted in connection with the company’s data center buildout.
Revenue from Microsoft’s Azure cloud-computing unit rose 40% from a year earlier, ahead of the 39.3% estimated on Wall Street.
The Productivity and Business Processes segment, which includes Office software products, LinkedIn and Dynamics business software, totaled $35.01 billion U.S., up 17% from a year ago.
Management said they now have more than 20 million subscribers for their 365 Copilot artificial intelligence (A.I.) commercial Office subscriptions.
Microsoft’s More Personal Computing unit, which includes the Windows operating system and Xbox video games, contributed $13.19 billion U.S. in revenue, down 1%.
Executives at the company added that annualized revenue from A.I. altogether now stands at $37 billion U.S., up 123% from a year earlier.
MSFT stock has declined 10% this year amid worries that A.I. will disrupt the software industry.
