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New York – Technology giant Microsoft announced on Tuesday that its net profit at the end of fiscal 2024 was US$88.136 billion, a year-on-year increase of 22%, driven by the growth of its intelligent cloud services.
The world’s second-largest company by market value posted total revenue of $245.122 billion in the 12 months to June 30, up 16%, of which $105.362 billion corresponded to the cloud business, according to a statement.
The company’s CEO Satya Nadella attributed the better-than-Wall Street results to the company’s innovation and customer trust as it seeks to stay ahead in the “artificial intelligence” era while meeting customer needs.
In the last quarter, between April and June, Microsoft earned $22.036 billion (up 10% year-on-year) on revenue of $64.727 billion (up 10% year-on-year).
Quarterly Intelligent Cloud revenue reached $28.515 billion (up 19%), mainly driven by momentum in the Azure platform, which grew 29%; however, analysts have higher expectations for the company’s engine.
In the age of artificial intelligence, Microsoft’s cloud business faces stiff competition from Amazon (Amazon Web Services) and Alphabet (Google Cloud), as this cutting-edge technology requires these platforms to continue to explode.
In addition to the cloud, the company founded by Bill Gates also got a boost from the productivity and business process sectors, including software such as Office 365 and social network LinkedIn (77.728 billion users that year).
In third place is the Personal Computing sector ($62,032 million for the full year), which includes the brand’s different devices, Windows operating systems or Xbox consoles and their video games.
According to reports in the professional media, Microsoft, which announced its results at the close of the stock market, saw its share price fall by 7% in the first negative reaction to the cloud data.
The company, which joined other tech companies in a wave of layoffs early last year, is struggling to retain talent and has announced performance-linked bonuses for employees, according to an internal report obtained by CNBC. Efei
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