Microsoft's AI and Cloud investments are paying off
Microsoft has reported strong fourth-quarter revenue and profit figures in its Q4 FY23, ended June 2023 report, outperforming market expectations and impressing investors.
The growth was driven by the company's investment in its cloud business, fueled by cutting-edge artificial intelligence (AI) technology. Microsoft's strong commitment to AI innovation is evident in the substantial increase in capital expenditures, which rose to $10.7 billion from the previous quarter's $7.8 billion.
Despite increased investment to support its AI initiatives, Microsoft's revenue for the fiscal fourth quarter, ending in June, reached an impressive $56.2 billion, surpassing analysts' consensus estimate of $55.5 billion. The net income for the quarter was equally remarkable, witnessing a 20% growth to reach $20.1 billion, equivalent to $2.69 per share, outperforming the expected $2.55 per share, per the Techloy chart below.
