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Innovative Cloud Business Growth: Microsoft Quarterly Performance Report

Microsoft has reported its financial results for the December quarter of 2024 (the second quarter of fiscal year 2025), with total revenue of $69.632 billion according to GAAP, an increase of 12% from the same period the year before. The company achieved a net income of $24.108 billion.

The Intelligent Cloud business group is a high-growth area for Microsoft, with total revenue of $25.544 billion, a 19% increase, driven by a 31% growth in Azure.

The Productivity and Business Processes group saw revenue of $29.437 billion, up 14%, with Microsoft 365 Commercial growing by 15% and Microsoft 365 Consumer by 8%. The More Personal Computing group reported revenue of $14.651 billion, similar to the previous year, with Windows OEM and hardware growing by 4% and Xbox by 2%.

CEO Satya Nadella highlighted ongoing innovation across all segments aimed at delivering value to customers, particularly through investments in AI. Microsoft’s AI business now generates over $13 billion in annual revenue, an increase of 175%.

Nadella addressed analyst questions about DeepSeek, emphasizing the company’s continued focus on improving performance in Pre-Training and Inference. Inference has seen a two-fold increase in efficiency across all models, with Azure AI Foundry now offering DeepSeek R1 as an additional option for customers.

Source: Microsoft and CNBC

TLDR: Microsoft reports strong financial performance across its business segments, with significant growth in Intelligent Cloud and continued innovation in AI technologies.

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