Microsoft beats quarterly estimates as AI boosts cloud business

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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.

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 25, 2023. REUTERS/Gonzalo Fuenteson 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 is weaving AI into its own products, such as the $30-a-month "Copilot" for its Microsoft 365 service that can summarize a day's worth of emails into a quick update. It is also aiming to sell cloud computing services that other firms will use to build AI services. 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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