Microsoft on Wednesday reported financial results that could quell investor unease over its heavy spending on artificial intelligence.
Sales from July through September hit $65.6 billion, up 16% from a year earlier. Profit rose 11%, to $24.7 billion. The results surpassed Wall Street's expectations and Microsoft's own predictions.
At the same time, Microsoft showed little sign that it was putting the brakes on the blistering pace of its spending to build data centers for its AI work. The company spent $20 billion on capital expenditures, up 79% from a year earlier.
"We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools," Satya Nadella, Microsoft's CEO, said in a statement.
The company's executives had told investors that Microsoft expected sales to be constrained through the end of the year because its available data center capacity was not enough to meet customer demand.
Sales from July through September hit $65.6 billion, up 16% from a year earlier. Profit rose 11%, to $24.7 billion. The results surpassed Wall Street's expectations and Microsoft's own predictions.
At the same time, Microsoft showed little sign that it was putting the brakes on the blistering pace of its spending to build data centers for its AI work. The company spent $20 billion on capital expenditures, up 79% from a year earlier.
"We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools," Satya Nadella, Microsoft's CEO, said in a statement.
The company's executives had told investors that Microsoft expected sales to be constrained through the end of the year because its available data center capacity was not enough to meet customer demand.
