Microsoft reports $20.1B quarterly profit as it promises to lead 'the new AI platform shift'

abcnews.go.com:

Microsoft on Tuesday reported fiscal fourth-quarter profit of $20.1 billion, or $2.69 per share, beating analyst expectations for $2.55 per share

REDMOND, Wash. — Microsoft on Tuesday reported fiscal fourth-quarter profit of $20.1 billion, or $2.69 per share, beating analyst expectations for $2.55 per share.

It posted revenue of $56.2 billion in the April-June period, up 8% from last year. Analysts had been looking for revenue of $55.49 billion, according to FactSet Research.

CEO Satya Nadella said the company remains focused on “leading the new AI platform shift.”

“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 – safely and responsibly,” he said in a prepared statement.

Microsoft was an early mover in this year's hype around “generative AI” tools that can help people write documents and create new images and other media. It capitalized on its multibillion dollar investments in ChatGPT-maker OpenAI to launch a chatbot for Microsoft's Bing search engine and similar tools tailored to its business customers.

Macquarie analyst Sarah Hindlian-Bowler said investors have been focused on Microsoft's early revenue from those artificial intelligence investments, the performance of the Azure cloud computing platform and the likelihood that Microsoft will close its deal to buy video game company Activision Blizzard, which could help boost gaming revenue and drive more users to the Xbox game system and other Microsoft platforms.

More than 18 months after announcing the $69 billion deal, Microsoft is still negotiating with a British antitrust regulator over concerns it will harm competition. The U.S. Federal Trade Commission