Microsoft's Cloud Expansion: Profits Soar Amid Strategic Shift

Microsoft's flagship cloud computing platform, Azure, reported an impressive 34% annual revenue increase to $75 billion, underlining the tech giant's strategic shift towards artificial intelligence.

Despite announcing significant layoffs of around 15,000 employees this year, Microsoft's profits soared, reaching $34.3 billion, or $3.65 per share, exceeding analysts' forecasts of $3.37 per share. Additionally, the company's fiscal fourth-quarter revenue rose to $76.4 billion, surpassing expectations.

CEO Satya Nadella described the layoffs as an opportunity to redefine the company's mission for the AI era. Wall Street has welcomed these moves, as Microsoft and its peers justify substantial capital spending for AI-enhancing infrastructure. Following Google's budgetary expansions, Microsoft is expected to announce further investment guidance soon.

(With inputs from agencies.)