Microsoft Q2 earnings live: AI fuels revenue gain

The software giant sees AI become reality and helps power gains in Cloud and other business. But investors aren't impressed. Analyst call is at 5:30 p.m. ET.

Jan 31, 2024 - 04:30

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Microsoft Q2 earnings live: AI fuels revenue gain

This is a continuing story. Check back for updates.

Last updated: 5:20 p.m. ET

Microsoft (MSFT) - Get Free Report shares were slipping hours even as the software giant easily beat estimates with its latest quarterly results.

The shares have soared in the last year, largely because of its aggressive adoption and use of Artificial Intelligence capabilities.

Microsoft earned $2.93 per share,up from $2.32 a year ago.

Revenue of $62 billion was up 18% from a year ago.

The company will issue guidance on the rest of the fiscal year at 5:30 p.m. ET.

Despite the bullish results, shares were off about 0.7% after hours after closing at $408.59, down 0.3%. Earlier in the day, Microsoft hit an all-time high of $413.04.

Microsoft AI growth power its Azure's offerings.
TheStreet

Earlier in January, Microsoft's market capitalization topped $3 trillion, joining Apple (AAPL) - Get Free Report, as the companies with market cap greater than $3 trillion. And then Microsoft overtook Apple as the most valuable U.S. stock. With TAs of Tuesday's 2% decline to $188.04, Apple's market cap has declined to just $2.91 trillion. Apple reports results for its fiscal first quarter after Thursday's close.

As of Tuesday's 2% decline to $188.04, Apple's market cap has declined to just $2.91 trillion. Apple reports results for its fiscal first quarter after Thursday's close.

AI is the fuel for Microsoft's growth

The revenue gains were due mostly to expansion of its Cloud and artificial capabilities.

Total Microsoft Cloud revenue was up to $33.7 billion, up 24% from a year ago, Chief Financial Office Amy Hood said in the company's earning release.

AI is expected to fuel Microsoft’s market share among enterprise customers not only cloud adoption but also in its search capabilities.

More Business of AI:

But competition is going to increase as well from the likes of Google-parent Alphabet (GOOGL) - Get Free Report, which reported this afternoon, Facebook parent Meta Platforms (META) - Get Free Report, and Amazon.com (AMZN) - Get Free Report

The technology, which can answer questions, create images and write code, has been heralded for its potential to disrupt businesses and create trillions of dollars in economic value, The New York Times reported earlier this month.

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