Microsoft Hits 10th Straight Quarter of Record Revenue Amid AI Spend
AI-generated image · US National Wire
The tech giant reports $92.3 billion in quarterly revenue, but record capital expenditures signal the massive cost of scaling AI infrastructure.
As TechCrunch first reported, Microsoft has achieved record-breaking revenue for 10 consecutive quarters. In its most recent quarterly report, the company posted $92.3 billion in revenue, marking a 19% increase compared to the same period last year.
Net income rose 32% on a GAAP basis to $36.6 billion. Much of this growth was fueled by the Microsoft Cloud segment, which generated $63.9 billion. Within that segment, Azure contributed $33.2 billion, while Microsoft 365 brought in nearly $28 billion. TechCrunch notes that while not all cloud revenue is AI-driven, Microsoft reported $10 billion in revenue from OpenAI, which continues to run many services on Microsoft's cloud despite partnerships with Oracle and AWS. Anthropic also utilizes Azure.
Microsoft has restructured its business reporting into two segments: Devices and Consumer, and Agents and Infra. While the latter is thriving, the Devices and Consumer segment saw revenue drop 3% to $15.5 billion, with Windows OEM and devices revenue declining 22% year-over-year.
To support these AI commitments, Microsoft is investing heavily in physical infrastructure. Capital expenditures reached a quarterly record of $45.2 billion. This spending coincides with a 73% increase in "commercial remaining performance obligation," which reached $677 billion in future revenue committed under existing contracts with AI labs, as reported by TechCrunch.