Time: 2024-07-31
Microsoft recently announced its fiscal fourth - quarter earnings , surpassing expectations with earnings per share of .95 on revenue of 4.7 billion . However , the company fell short on cloud revenue expectations , causing its shares to tumble by more than 7 % in after - market trading . Despite the miss in cloud revenue , Microsoft 's overall revenue still rose by 21 % year over year . The Intelligent Cloud revenue saw a 19 % increase year over year , with AI services contributing 8 percentage points of growth to its Azure and other cloud services revenue , which increased by 29%.
Executives at Microsoft remain optimistic about the company 's cloud future , predicting a speed - up in cloud growth in the first half of 2025 . The company 's top segment , Intelligent Cloud , generated 8.52 billion in revenue , with revenue from Azure and other cloud services growing by 29 % during the quarter . This growth was driven by AI services , which accounted for 8 percentage points of the overall growth . Microsoft has also been gaining market share from competitors like Google and Amazon in the Cloud computing space , particularly due to its early lead in AI development.
Microsoft 's cloud unit is crucial in its competition with Amazon Web Services and Google for AI workloads . The company 's focus on AI capabilities and attracting startups and large companies has been paying off , with Azure and other cloud services continuing to see strong growth . Despite missing expectations in some regions , Microsoft is confident about its future cloud revenue growth , with forecasts indicating a steady increase in the coming quarters.
While Microsoft 's latest earnings report was mostly positive , analysts are closely monitoring the company 's cloud revenue performance . With AI services playing a significant role in driving growth , Microsoft 's ability to meet the increasing demand for Azure AI services will be crucial in maintaining its competitive edge . The market response to Microsoft 's earnings was mixed , with shares initially falling in after - market trading but showing signs of recovery as investors digested the results and outlook for future cloud growth.
Overall , Microsoft 's earnings report highlights the importance of cloud computing and AI in driving the company 's revenue growth . As technology continues to advance , companies like Microsoft are adapting to meet the changing demands of the market , positioning themselves for continued success in the evolving landscape of cloud computing and Artificial intelligence.
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