Crediting growing demand for large AI models across consumer and commercial products that are driving increased cloud consumption, Microsoft reported strong FY24 Q1 results last night. First-quarter revenue was up 13% to $56.5 billion compared to $50.1 billion last year. Net Income soared 27% to $22.2 billion in Q1 from $17.5 billion in the same quarter a year ago. Gross margin expanded to 71%, up from 69% a year ago, driven by Azure and Office 365 gross margin improvements. Operating Income still grew 25% despite Microsoft’s AI investments, showing the company’s ability to balance growth and profitability.
