Microsoft reported cloud revenue above analyst expectations for the July–September quarter, according to Reuters, a result the outlet links to the company's continued spending on artificial intelligence.
Reuters reports that profit for the quarter rose 32%. Its AI-oriented cloud business grew revenue by roughly 50%, according to a separate report from Nikkei.
The results extended a run of records. Operating profit climbed 21%, marking the fifteenth consecutive quarter at a high, while revenue reached its highest level in ten straight quarters, Kabutan reported.
Investors responded after hours, with the stock up about 5% following the release, according to a Yahoo! Finance markets brief.
The figures suggest Microsoft's heavy AI outlays are feeding through to its cloud business, the segment Reuters identified as the driver of the beat. The reports did not disclose the size of those investments or the specific products behind the cloud growth.
Microsoft has not yet commented publicly beyond the results themselves, based on the available reporting.
What to watch: whether Microsoft sustains this cloud growth in the coming quarters and how much it continues to commit to AI infrastructure.
