Microsoft reported elevated earnings despite facing an outage of its cloud computing service, Azure, and office software suite, 365. The company’s strong earnings report comes a day after it pushed the value of the tech giant to over $4 trillion through a deal with OpenAI.
The outage did not impact Microsoft’s financial outlook. The company reported first-quarter earnings of $3.72 per share and revenue of $77.7 billion, exceeding analyst expectations. Azure cloud business grew by 40%, operating income increased by 24%, and net income was $27.7 billion.
Satya Nadella, CEO of Microsoft, attributed the company’s growth to its “planet-scale cloud and AI factory” driving broad diffusion and real-world impact. However, the company reported spending a larger-than-expected $34.9 billion on new AI-related projects over the quarter, a 74% increase from last year.
A deal with OpenAI has also been welcomed by investors, who see Microsoft as more closely tied to the company’s growth. The earnings report gives Wall Street its latest look at the company’s AI and cloud growth.
Source: https://www.theguardian.com/technology/2025/oct/29/microsoft-earnings-azure-outage-xbox