Microsoft concluded its fiscal year 2023 with a net profit of $72.36 billion (€65.47 billion), marking a 0.5% decline from the previous year. However, the company’s latest quarterly results exceeded market expectations, demonstrating the impact of its commitment to artificial intelligence (AI) technology.
In the last 12 months, Microsoft achieved a 7% increase in turnover, reaching $211.92 billion. Despite the growth in revenue, it was not enough to surpass the net profits of the previous year, as explained in a recent statement. Between April and June, the company’s performance garnered significant investor attention. Microsoft’s quarterly revenue amounted to $56.19 billion, representing an 8% surge compared to the same period in the previous year. Additionally, the company recorded a profit of $20.08 billion, an impressive 20% growth.
Microsoft’s Fiscal Year 2023 Results Show Resilience Amid AI Commitment
The company’s recent success can be attributed to the strong performance of its cloud services, with overall turnover increasing by 15%. Of note, the Azure service witnessed a remarkable 26% growth, becoming a major growth driver for Microsoft.
The Productivity and Business Processes segment, which includes Office and LinkedIn software, experienced over 10% growth in turnover. However, the personal computing area, which encompasses Windows, device sales, and Xbox video game consoles, saw a decline of 4% in income.
Following the announcement of the results, Microsoft’s shares experienced a slight dip in after-hours trading on Wall Street, despite ending the session with a solid 1.70% gain.
With substantial investments in OpenAI, the organization behind the popular ChatGPT, Microsoft is heavily focused on AI technology. The company has already integrated AI into various services, such as its search engine, Bing. This emphasis on AI, along with other favorable factors for technology companies, has led to a significant gain of over 46% in Microsoft’s shares this year, fully recovering from the losses incurred in 2022.
Satya Nadella, Microsoft’s CEO, emphasized the importance of AI in the company’s strategy. He stated, “Organizations are asking not just how, but how quickly they can apply this new generation of AI to respond to the biggest opportunities and problems they face, safely and responsibly.”
Microsoft’s commitment to leading the AI platform shift and leveraging its cloud capabilities has positioned the company for continued success in the rapidly evolving tech landscape.