Microsoft Reports 10% Profit Growth in Q4, Driven by AI Investments
Redmond, Washington (AP) - Microsoft Corp. announced a 10% year-over-year increase in its profit for the October-December quarter, driven by its focus on capitalizing on artificial intelligence (AI) technology.
Financial Performance
Microsoft's net income reached $24.1 billion, or $3.23 per share, surpassing Wall Street expectations of $3.11 per share. Revenue climbed 12% to $69.6 billion, exceeding analyst forecasts of $68.87 billion.
Cloud Computing
Despite overall strong financial performance, growth in Microsoft's cloud computing segment fell slightly below projections. Sales reached $25.5 billion, falling short of analyst estimates of $25.83 billion.
Other Business Segments
The productivity business segment, including Office products, experienced a 14% growth to $29.4 billion. The personal computing segment remained stable at $14.7 billion, led by the Windows division.
AI Investments and Market Competition
Microsoft's AI investments played a significant role in the quarter's growth. However, concerns emerged over the rise of ChatGPT, developed by Chinese firm DeepSeek, which has raised questions about U.S. tech companies' AI dominance.
Microsoft emphasized its partnership with ChatGPT creator OpenAI and its own AI chatbot services, Copilot. The company plans to invest $80 billion this year to expand its AI infrastructure and develop specialized chips.