Posted 1/30/2024, 9:02:17 PM
Microsoft Tops Estimates as Azure AI Growth Counters Rising AI Costs
- Microsoft beat revenue and profit estimates for the quarter, aided by AI features driving Azure cloud growth
- But shares dipped 1% as investors weighed rising costs to develop AI capabilities
- Azure revenue grew 30% year-over-year, with 6 percentage points attributable to AI
- Strength in Azure and Office drove Intelligent Cloud and Productivity segments above expectations
- Company forecasts higher operating expenses next quarter and said capital expenditures will "increase materially"