On January 31, CNMO learned that Microsoft announced its financial results for the second quarter of fiscal year 2024, many of which exceeded analysts' expectations, especially driven by artificial intelligence (AI) business, with significant growth in revenue and net profit. According to the financial report, Microsoft's operating income for the fiscal quarter reached 620$2 billion, up from $527 in the same period last year$4.7 billion rose 18%, beating analysts' previous estimates of 611$400 million. Net profit was 218$7 billion, up from $164 a year earlier$2.5 billion, an increase of 33%.
The revenue of the intelligent cloud business reached 258$800 million, also exceeded expectations of $252$900 million. This growth was driven by Microsoft's leadership in generative AI and the strong performance of its cloud computing business.
Microsoft's chief financial officer said at the ** conference after the earnings release that the rapid development of AI technology is driving the growth of Microsoft's Azure cloud computing services. According to him, Azure's revenue grew by about 6% in the second fiscal quarter, which was driven by high-margin businesses such as AI and machine learning.
In addition, the number of paid cloud office business users at Microsoft continues to grow. According to the financial report, up to now, there have been more than 400 million paid cloud office business users. This number not only reflects Microsoft's leading position in the office software space, but also lays a solid foundation for the company's future growth. It is worth mentioning that Microsoft completed the acquisition of Activision Blizzard last year, which further enhanced Microsoft's position in the global gaming industry. With the continuous expansion of the gaming market and the widespread application of AI technology, Microsoft's potential in this field cannot be underestimated.
Following the earnings release, Microsoft shares were trading at 0.0 in Tuesday's after-hours trading28% to close at 408$59. Wall Street remains optimistic about Microsoft's stock price outlook. Ahead of the earnings release, 50 analysts unanimously recommended Microsoft, with only four giving a "neutral" hold rating and no one recommending selling. The average price target is around $443, which means that there is still 8% room for Microsoft stock to go forward.
Overall, Microsoft delivered a strong financial performance in the second quarter of fiscal 2024, especially driven by emerging businesses such as AI and cloud computing, which achieved significant growth in revenue and net profit. This provides strong support for Microsoft's competitive position in the global technology field and lays a solid foundation for its continued growth in the future. With the continuous development of AI technology and the expansion of application scenarios, Microsoft is expected to continue to maintain its leading position in the global technology industry.