Microsoft Reports Strong Q1 Results Driven by AI and Cloud Services

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.

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