The period, which for Microsoft is Q4 FY23, saw a healthy 20% boost to net income compared with Q4 FY22, up to $20.1 billion from $16.7 billion.
More broadly, Microsoft posted a similar 7% increase in revenue for the 12 months leading up to June 30, 2023, compared with the same period in 2022. However, net income saw a 1% drop, indicating that Microsoft’s work in recent months is paying off.
Microsoft profits on the rise
In its breakdown, Microsoft highlights some of the most considerable changes, with Azure and other cloud services seeing a 26% year-on-year increase, alongside Dynamics 365 at the same rate.
Other considerable changes came from Office and Office 365 Commercial products, server and cloud products, and Microsoft Cloud, indicating a strong relationship with enterprises.
On the flip side, Xbox content and services and consumer office software saw some of the smallest increases – but still increases, nonetheless.
Most troubling for the company were the devices and Windows OEM sectors, with the latter referring to Windows installations that ship with manufactured devices. These figures tie in with other market trends that show PC shipment slowdowns and a transition to Device-as-a-Service models.
During the earnings call, CEO Satya Nadella touched on the “great momentum across Azure OpenAI Service,” which sees the likes of Meta supporting Llama on Azure and Windows and Mercedes bringing ChatGPT via Azure OpenAI to almost one million vehicles’ voice assistants in the US.
The same three months saw Google Cloud report its own successful quarter (and it’s second profitable quarter ever), thanks also in part to the immense interest in artificial intelligence in recent months.