In its fiscal Q3 2023 report, Microsoft CFO Amy Hood stressed that the company would continue to prioritize AI-related endeavors.
Yesterday, Microsoft Corp (NASDAQ: MSFT) posted its fiscal Q3 2023 earnings report, which beat expectations on the top and bottom lines. In addition, the multinational tech corporation’s latest outing also surpassed estimates on quarterly revenue guidance.
For fiscal Q3 2023, Microsoft, whose shares climbed 7% in the pre-market on Wednesday, reported a revenue haul of approximately $52.9 billion. This sum compared favorably with the $51.02 billion analysts expected for the same period. Furthermore, Microsoft’s revenue for the fiscal third quarter represents a 7% increase year-over-year (YoY) from the $49.36 billion made in 2022.
Microsoft also reported fiscal third-quarter earnings per share (EPS) of $2.45 versus the $2.23 consensus estimate. Earnings per share increased 10% (and 14% in constant currency) from the previous quarter.
Operating income came in at $22.4 billion, a 10% increase YoY, while net income was $18.3 billion, marking a 9% climb.
Shares Benefit from Cloud-based & Other Tech-Oriented Services
Microsoft shares gained 8.3% during the after-market trading session, with TECHnalysis Research analyst Bob O’Donnell weighing in. According to O’Donnell, the company’s share price climb reflects its commitment to cloud computing and, by extension, artificial intelligence.
Azure and other cloud service growth slowed to 27% from 31% in the previous quarter. However, this growth rate was still faster than expected, and Microsoft is banking on more tech-enabled growth to drive its earnings. According to the Washington-based tech giant, artificial intelligence (AI) will spur revenue growth.
Microsoft Executives Weigh In on AI Prospects in Fiscal Q3 2023 Report
Microsoft chief financial officer Amy Hood touched on this tech development, saying:
“As with any significant platform shift, it starts with innovation, and we’re excited about the early feedback and demand signals from the AI capabilities we’ve announced to date. We will continue to invest in our cloud infrastructure, particularly AI-related spend, as we scale to the growing demand driven by customer transformation. And we expect the resulting revenue to grow over time.”
Hood’s bullishness on artificial intelligence is reflected in her guidance for the fiscal fourth quarter. During a conference call with analysts, the Microsoft CFO called for between $54.85 billion and $55.85 billion in revenue. The guidance’s median range of $55.35 billion suggests a growth of 6.7%, which exceeds the $54.84 billion expectations of analysts.
Microsoft chairman and chief executive officer Satya Nadella also expressed optimism at the company’s AI prospects, saying:
“The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing.”
In addition, Nadella identified Microsoft Cloud as the choice platform to help customers derive optimum value from “their digital spend.” Furthermore, the Microsoft CEO said the tech giant is primed to innovate for the next generation of artificial intelligence.
Microsoft-OpenAI Collaboration
In January, Microsoft said it invested billions in ChatGPT creator OpenAI. The deal was the third phase of a sustained investment partnership between both platforms, which dates back to 2019.
Microsoft explained that it forged a partnership with OpenAI to accelerate breakthroughs in artificial intelligence. Furthermore, the company added that the collaboration would commercialize advanced technologies for both platforms in the future.
At the time, Nadella also pointed out that Microsoft and OpenAI shared the ambition of “responsibly” advancing cutting-edge AI research and democratization.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Subscribe to our telegram channel.
Join
