Microsoft’s quarterly profit tops $36.6bn as cloud revenue grows
Microsoft reported profit of more than $36.6bn for the three months to the end of September, alongside revenue growth driven by its cloud business. The results matter to investors assessing whether the company’s heavy investment in artificial intelligence can deliver lasting returns.
Days earlier, Microsoft said it would offer voluntary buyouts to about 60,000 workers, as it seeks to cut costs while spending billions on AI infrastructure. Quarterly revenue rose to $92.3bn, and the company’s shares gained almost 2.9% in after-hours trading after the results were announced.
In short
- Microsoft made more than $36.6bn in quarterly profit.
- Revenue rose to $92.3bn, led by cloud growth.
- The company offered buyouts to about 60,000 workers.
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The case for
The results suggest Microsoft’s cloud business is growing strongly enough to support substantial investment in AI, while record profit and rising revenue indicate the company can fund that expansion and still reward investors. Supporters may see the buyouts as a way to adapt costs as technology and business priorities change, helping preserve competitiveness and returns over time.
The case against
Strong current results do not show that Microsoft’s billions in AI infrastructure will earn lasting returns, and cloud growth may not continue at the same pace. Critics may argue that cutting jobs while committing heavily to uncertain projects shifts the risks of that strategy onto workers, and that near-term profit and share gains are not evidence of long-term value.
Explained simply
Microsoft is a US technology company best known for Windows, Office software, the Xbox and its Azure cloud computing service. Cloud services let businesses store data and run software on remote computer systems; Azure competes with services from Amazon and Google.
Microsoft is also investing heavily in artificial intelligence, including the data centres and computing equipment needed to develop and run AI tools. Investors are watching whether demand for cloud and AI services can generate returns that justify this spending. The company’s costs and workforce decisions are part of that wider effort to manage its investment and growth.
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Originally published by BBC Technology as “Microsoft posts $36.6bn profit after offering buyouts to one in four workers”.