Microsoft posted $81.27 billion in revenue|Ajay Suresh|CC BY 2.0
Microsoft shares dropped 7% in extended trading yesterday after the company revealed that its cloud growth is slowing.
The company reported that its Azure cloud grew 39%, just below last quarter’s 40%.
It posted $81.27 billion in revenue, slightly above expectations, and $4.14 in earnings per share.
Operating profit margin fell to 45.1% due to investments in AI. Microsoft’s total future revenue, or backlog, jumped 110% to $625 billion, with almost half coming from ChatGPT maker OpenAI.
Productivity software like Office and Dynamics grew 16%, but Windows, Xbox, and Surface revenue fell 3%.
Microsoft now has 15 million seats for its new Microsoft 365 Copilot tool, showing strong potential for future growth.