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Be the first with the news that moves the market- Microsoft (NASDAQ:MSFT) shares were flat on Wednesday after posting record sales and profits, while AI begins to show its early impacts
- The tech giant posted US$56.2 billion in sales and US$2.69 earnings per share in the three-month period ending June 30, up 8 per cent from a year ago
- Microsoft looks to add more revenue thanks to AI as it intends to charge at least 53 per cent more to access new AI features in its popular Office software
- Microsoft opened trading at US$350.98 per share
Shares of Microsoft (NASDAQ:MSFT) were flat on Wednesday after posting record sales and profits, while AI begins to show its early impacts.
The tech giant posted US$56.2 billion in sales and US$2.69 earnings per share in its fiscal Q4 2023, up 8 per cent from a year ago. Profit was up 20 per cent to US$20.1 billion in the quarter ending June 30, which beat expectations from analysts and Microsoft itself.
Profits beat Microsoft’s previous record of US$18.8 billion, from Q4 2021.
Microsoft’s stock had jumped more than 40 per cent on the year ahead of this week’s earnings report as its investments in artificial intelligence (AI) have gained much investor interest.
In a news release, Microsoft’s chairman and chief executive officer Satya Nadella said organizations are asking not only how – but how fast – they can apply this next generation of AI to address the biggest opportunities and challenges they face.
“We remain focused on leading the new AI platform shift, helping customers use the Microsoft Cloud to get the most value out of their digital spend, and driving operating leverage,” Nadella said.
Microsoft looks to add more revenue thanks to AI as it intends to charge at least 53 per cent more to access new AI features in its popular Office software. It will also develop a more secure version of its Bing search engine for businesses to address their data-protection concerns, grow their interest in AI and compete more with Google. Customers will pay US$30 per user, per month for its AI copilot in Microsoft 365.
Microsoft Corp. develops and supports software, services, devices, and solutions. It operates through three segments. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication and information services, spanning a variety of devices and platforms.
Microsoft opened trading at US$350.98 per share.
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