PYMNTS.com January 30, 2025
Microsoft reported robust growth in artificial intelligence (AI) demand for the second quarter, with gains seen throughout its Copilot and Azure operations and propelling revenue and earnings past Wall Street expectations.
But non-AI business for its cloud division, Azure, disappointed Wall Street because it came in at the low end of expectations. Microsoft also expects this segment to be impacted throughout the second half of its fiscal year. Shares of Microsoft were down 6% in late morning trading Thursday (Jan. 30).
CEO Satya Nadella said Microsoft’s AI business has now exceeded an annual revenue run rate of $13 billion, up 175% year over year. The metric extrapolates what yearly revenue would be at the current growth pace.
“Enterprises are beginning...
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