Microsoft Revenue Streak Hits Ten Quarters Amid Massive AI Spending

Net income reached $36.6 billion, marking a 32% increase on a GAAP basis. The primary engine behind these results remains Microsoft Cloud, which generated $63.9 billion—a 30% jump compared to the previous year. Within this segment, Azure led the charge with $33.2 billion, while Microsoft 365 contributed nearly $28 billion. Revenue from OpenAI accounted for $10 billion, underscoring the tight integration between the AI lab and Microsoft’s server capacity.

Contrasting this growth, the Devices and Consumer segment saw a 3% decline to $15.5 billion, with Windows OEM and hardware revenue dropping 22%. Despite the hardware slump, the company’s commercial remaining performance obligation surged 73% to $677 billion, signaling strong long-term demand for its enterprise services. To maintain this trajectory, capital expenditures reached a record $45.2 billion, as Microsoft invests heavily in the data centers required to power its AI commitments.