Microsoft Extends Run to 10 Record Revenue Quarters — SkimNews
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- Microsoft reported quarterly revenue of $92.3 billion, up 19% over the year-ago quarter, and extended its record-breaking streak to 10 quarters in a row.
- Microsoft posted GAAP net income of $36.6 billion, up 32%, with the increase largely driven by Microsoft Cloud revenue of $63.9 billion, up 30%.
- Azure generated $33.2 billion, more than Microsoft 365’s nearly $28 billion, but the source cautioned that not all revenue in either service was necessarily AI-related.
- OpenAI accounted for $10 billion in Microsoft revenue even as it branched out to AWS and Oracle; its services still run extensively on Microsoft’s cloud, and Anthropic runs on Azure as well.
- Microsoft said commercial remaining performance obligation rose 73% to $677 billion, representing future revenue committed under existing AI-lab contracts.
- Microsoft recorded $15.5 billion in Devices and Consumer revenue, down 3%, while Windows OEM and devices revenue fell 22% from a year earlier.
- Microsoft said capital expenditures topped $45.2 billion, an all-time quarterly record, as it spent heavily to prepare for delivery on its commercial commitments.
Why it matters: Microsoft Cloud’s $63.9 billion quarter, up 30%, outweighed a 22% drop in Windows OEM and device revenue, showing that this quarter’s growth leaned on cloud and AI-linked workloads rather than hardware. Capital spending above $45.2 billion also means Microsoft is investing record sums to prepare for $677 billion in commercial contracted revenue.
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