Microsoft Azure quarterly revenue grew 48% year-over-year to $33.2 billion, with shares up about 4% after hours
Microsoft Azure revenue grew 48% year-over-year to $33.2 billion, beating analysts' expectation of $32.3 billion and driving Microsoft shares up about 4% after hours. Data center spending for the quarter was $45.2 billion, below Microsoft's own expectation of more than $50 billion due to construction delays, while free cash flow fell 27% year-over-year to $18.6 billion. Signed future revenue reached $677 billion, up 73% year-over-year and slightly below the previous quarter's $678 billion; Microsoft did not update its paid Copilot seat figures, last reported at 30 million in July. Microsoft is offering buyout packages to up to 60,000 employees in the United States, Canada, the United Kingdom and India to control costs, after its total headcount had already fallen 2% year-over-year.
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The original piece puts Azure's growth rate, data center spending below expectations, and 60,000 buyouts together, letting readers see the tension between AI infrastructure investment and cost control.
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Microsoft shares rose about 4% in after-hours trading after Azure revenue grew 48% year on year to $33.2B, beating analysts’ $32.3B forecast.
> Data center spending reached $45.2B in the quarter, below Microsoft’s own forecast of more than $50B because of construction delays, and cut free cash flow 27% year on year to $18.6B.
> Contracted future revenue reached $677B, up 73% year on year but slightly below the previous quarter’s $678B, and Microsoft gave no update on paid Copilot seats, last reported at 30M in July.
> Microsoft is offering buyouts to up to 60,000 employees in the US, Canada, UK and India to control costs as AI infrastructure spending climbs, after headcount already fell 2% year on year.