Investors were eagerly awaiting Microsoft’s quarterly results. The software giant opened its books on Thursday.
The third quarter of the 2024 financial year ended with an increase in profits for Microsoft. Earnings improved from $2.45 per share to $2.94 per share, meaning the software company did better than the market expected. Analysts had previously forecast EPS of $2.82. The bottom line was that profits climbed by a fifth to almost $22 billion.
Microsoft continues to grow rapidly thanks to the boom in cloud offerings and products related to artificial intelligence (AI). Sales rose by 17 percent to almost 62 billion dollars (around 58 billion euros) in the third quarter of the current financial year (June 30). A year ago, Microsoft had revenues of 52.86 billion US dollars. The analysts’ estimates were also exceeded here; the expert estimates had previously amounted to 60.83 billion US dollars.
Microsoft gave a clear signal that its investments in cloud and artificial intelligence are paying off. The software giant entered into a pact with ChatGPT developer OpenAI and, on this basis, is integrating AI functions into more and more of its products. The need for computing power for artificial intelligence in turn drives Microsoft’s cloud business. Sales on Microsoft’s cloud platform Azure rose by 31 percent.
Jefferies keeps Microsoft at ‘Buy’ – target $550
– Analyst firm Jefferies has maintained its rating for Microsoft at “Buy” with a price target of $550. Microsoft remains its “top pick” when it comes to artificial intelligence (AI), wrote analyst Brent Thill in a study available on Friday after the quarterly figures published on Thursday evening.
RBC leaves Microsoft at ‘Outperform’ – target of $450
Canadian bank RBC has left Microsoft at “Outperform” with a price target of $450. According to analyst Rishi Jaluria, Microsoft presented a solid quarterly report. In a study available on Friday, he referred to the accelerated growth in the Azure cloud business and the continued high momentum in the area of artificial intelligence (AI).
Image source: Asif Islam / Shutterstock.com,James Marvin Phelps / Shutterstock.com,Ken Wolter / Shutterstock.com