Microsoft's AI Surge Drives Strong Revenue Growth

Microsoft exceeded Wall Street expectations for its latest quarterly revenue, thanks to the robust demand for its artificial intelligence tools. This demand propelled steady growth in its Azure cloud-computing unit, significantly contributing to the company's financial performance.

In the fiscal fourth quarter, Microsoft reported a total revenue increase of 18%, reaching $76.4 billion. This surpassed the average analyst prediction of $73.81 billion, highlighting the company's strong market position. Notably, Azure's revenue saw a 39% increase, surpassing prior estimates and resulting in a boost in Microsoft's stock by over 6% in extended trading.

As the second-largest cloud provider, Microsoft disclosed that Azure achieved $75 billion in full-year revenue, for the first time revealing sales figures in dollar terms. This comes amid competitive pressure in the technology sector to demonstrate significant returns from substantial investments in artificial intelligence technologies.

(With inputs from agencies.)