Tech giant Microsoft reports 20% increase in quarterly profit driven by AI product adoption efforts

Microsoft reported a 20% increase in profit for the January-March quarter, positioning itself as a leader in applying artificial intelligence technology to enhance workplace productivity. The software giant’s quarterly net income reached $21.93 billion, surpassing Wall Street expectations, with earnings of $2.94 per share.

Revenue for the period totaled $61.86 billion, a 17% increase from the previous year. Microsoft’s cloud computing business segment saw a 21% growth, reaching $26.7 billion, while revenue from productivity services, including its Office line of products, rose 12% to $19.6 billion.

The company has integrated AI technology into its core business operations, offering products like the Copilot chatbot, which aids in document composition and image generation. Microsoft charges businesses $30 per employee per month to access Copilot as part of their subscription package.

Despite its AI advancements, Microsoft faces challenges in cybersecurity, as highlighted by a recent federal report criticizing the company’s security practices. The report cited vulnerabilities that allowed state-backed cyber operators to breach email accounts of senior U.S. officials, emphasizing the need for a security overhaul.

Investors responded positively to Microsoft’s financial performance, with the company’s stock rising approximately 5% in after-hours trading. As Microsoft continues to innovate with AI technology, businesses and consumers alike are closely monitoring its efforts to enhance security measures and drive future growth in the tech industry.