Microsoft beats quarterly estimates as AI boosts cloud business and spending

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:Microsoft on Tuesday surpassed Wall Street estimates for fourth-quarter revenue and profit as its cloud business benefited from product upgrades featuring new artificial intelligence (AI) technology.But costs rose sharply from the previous quarter as it built new data centers to support AI, and Microsoft Chi

:Microsoft on Tuesday surpassed Wall Street estimates for fourth-quarter revenue and profit as its cloud business benefited from product upgrades featuring new artificial intelligence technology.

Microsoft forecast Azure revenue growth of 25 per cent-26 per cent in constant currency for the fiscal first quarter, compared with an estimate of 25.6 per cent from Visible Alpha that does not adjust for foreign exchange rates. Microsoft's forecast for its Windows segment was $12.7 billion, compared with analyst estimates of $13.14 billion.

The company is still navigating a PC business slump, with sales including of its Windows operating system falling to $13.9 billion. This compares with analysts' consensus estimate of $13.6 billion according to Refinitiv.

 

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