tech
Microsoft CFO tells employees the company's biggest AI bets are paying off
The memo cited "important progress in key areas" like Azure and Microsoft 365 Copilot. These businesses have faced pressure amid generative AI boom.
TL;DR
- Microsoft reported $90 billion in fourth-quarter revenue, surpassing Wall Street expectations.
- CFO Amy Hood's internal memo to employees highlighted growth in Azure and Copilot as proof that AI investments are paying off.
- Microsoft Cloud revenue reached $59.3 billion in Q4 and $214 billion for the full fiscal year, a 27% increase.
- Azure and other cloud services revenue growth accelerated to 43%.
- Microsoft 365 commercial cloud revenue increased 16%, with net paid seat adds for Copilot doubling sequentially to over 30 million.
- The company invested over $41 billion in capital expenditures to expand data center capacity.
- Security, quality, and reliability remain top priorities for Microsoft.
- Commercial bookings grew 18% (excluding OpenAI), and commercial remaining performance obligation increased to $678 billion.
- Despite overall PC market decline, Windows OEM and Devices revenue decreased by 7%.