Microsoft's Quarterly Sales Surge 16% to $65.6 Billion Amid Investor Questions on AI Investments

Microsoft reported a 16% increase in quarterly sales, reaching $65.6 billion, driven by extensive investments in artificial intelligence. This growth, announced on October 31, 2024, underscores Microsoft’s commitment to integrating AI across its services, despite some investor concerns regarding the costs involved. 

Microsoft has invested billions to expand data centers and infrastructure required to power AI solutions that create content, generate images, and assist users as digital personal assistants. These efforts are beginning to yield returns, with AI-related products projected to add approximately $10 billion to annual revenue—a record pace for any new business within Microsoft’s history, according to CEO Satya Nadella.

The company also reported a quarterly profit increase of 11%, totaling $24.7 billion ($3.30 per share), surpassing Wall Street forecasts of $3.10 per share on $64.6 billion in revenue. Microsoft’s latest AI assistant, Copilot, has been embedded across multiple business lines, especially within Azure cloud contracts, positioning AI as a core driver of Microsoft’s future revenue streams.