Microsoft Corporation reported an impressive 11 percent year-on-year increase in profit, reaching $24.7 billion for the third quarter ending September 30, 2024. This growth was primarily driven by strong performances in its cloud and productivity sectors.
According to the financial results released on Wednesday, Microsoft’s revenue surged to $65.6 billion, representing a 16 percent increase compared to the same period last year. The company’s operating income also experienced a significant rise, growing by 14 percent to $30.6 billion. As a result, Microsoft, currently the world’s third most valuable company with a market capitalization of $3.156 trillion, reported diluted earnings per share of $3.30, a 10 percent increase from the previous year.
In the Productivity and Business Processes segment, revenue reached $28.3 billion, reflecting a 12 percent increase. This segment’s growth was further fueled by a 13 percent rise in revenue from Microsoft 365 Commercial products and cloud services, with Microsoft 365 Commercial cloud revenue up by 15 percent.
Microsoft’s Chairman and Chief Executive Officer, Satya Nadella, commented, “AI-driven transformation is reshaping work, work artefacts, and workflows across every role, function, and business process.”
He added, “We are expanding our opportunities and gaining new customers as we support them in applying our AI platforms and tools to drive new growth and operational leverage.”
Microsoft’s Executive Vice President and Chief Financial Officer, Amy Hood, stated, “Strong execution by our sales teams and partners has provided a solid start to our fiscal year, with Microsoft Cloud revenue reaching $38.9bn, up 22 per cent year-over-year.”
