Microsoft Corp.'s quarterly sales and profit climbed more than projected, lifted by corporate demand for the software maker's cloud and artificial intelligence offerings. Revenue in the third quarter rose by 17%, EPS came in at $2.94.

Redmond

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Microsoft Corp. has reported a significant increase in its quarterly sales and profit, attributed mainly to the heightened demand for its cloud and artificial intelligence offerings. The company announced that its revenue for the third quarter rose by 17%, with earnings per share (EPS) coming in at $2.94. This performance has exceeded projections, demonstrating Microsoft's strong position in the technology sector.

The detailed analysis of the company's performance highlighted an outstanding growth in Azure, Microsoft's flagship cloud service, which saw a 31% increase. This growth surpasses the expected 28%, marking a significant achievement amidst challenging macroeconomic conditions. Observers have noted this as a particularly positive aspect of Microsoft's quarterly report, alongside the company's ability to generate greater capital returns to shareholders.

Concerns regarding future guidance were raised, indicating that investors are keenly awaiting further announcements. These concerns underline the importance of Microsoft's next moves, especially in maintaining its growth trajectory in key areas such as artificial intelligence, which has been a major driver of the company's recent success. The tech sector has seen varied performance, with non-AI tech spending described as "abysmal" by some companies, but Microsoft's focus on AI appears to be paying off.

Efficiency was another highlight of Microsoft's quarterly results, with the company showing solid margins across all revenue lines. The scalability of Microsoft's software business model is attributed to its significant capital expenditure and investments in research and development. These strategies are expected to continue yielding high returns on invested capital, securing Microsoft's position as a leading entity in the software industry.



Microsoft earnings get boost from AI and cloud demand

What do you think about the results that you saw first blush? What is there to like that investors are most holding on to and does it hold into tomorrow? The Azure growth of 31%. I mean, that's a big jump. The expectations were 28%. And frankly speaking, going into the quarter, we thought anything above 28 would be a welcome. I mean, this is a very big number, frankly, given the current macro conditions. Is there anything bad in this report, Anurag? I mean, every headline I'm seeing come across the terminal is a beat. They're even handing out more capital to shareholders. They seem to be beating everywhere. Is there anything that we can point to as a risk for this company right now? Yeah, I'll let you know in one and a half hours when they give guidance because that's really what's going to dictate what's happened to the stock tomorrow because that 31%, they better find a way to either, you know, say they're going to be flat growth rate next quarter for 31% or better. Otherwise, you're going to see a reversal of this. Right. I mean, is there anything that they could say that could really stop the party to the point that both of you have been making here, especially when it comes to spending in terms of kind of building up on future plans, particularly as it relates to AI? So one of the things you would notice right now in the last few weeks, non-AI tech spending has been weak. In fact, it's been abysmal, whether it's Accenture and IBM and perhaps even Intel. So when you look at the AI part of it, that's probably what's driving a lot of what's happening with Microsoft. So they need to keep that momentum going. Otherwise, you know, as I said, it's going to be a different story tomorrow morning. Talk to us a little bit about their efficiency. I mean, they obviously are beating across the board on every revenue line, but they're also extremely efficient and producing pretty solid margin. Where do you see potential future gains from efficiency coming from? See, the scalable model of software is something. Now, they have been spending quite a bit on CapEx, and they've been investing quite a bit. Now, over time, that really translates into high gross margins, high return on those invested capital. And somebody like Microsoft, it can absorb a lot of these investments better than anybody else. So I think there's a lot less spend on sales and marketing. I think R&D is still OK. So it's a scaled business, and there isn't anybody out there better than Microsoft when it comes to scale in the software world.

Some 3,000 federal agents are still in the Twin Cities area as President Trump is threatening to invoke the Insurrection Act over continued protests against immigration operations there. Ian Lee reports.

Minnesota

ICE operations, protests continue in Twin Cities as Trump threatens

President Trump continued his push for the U.S. to take over Greenland, telling the prime minister of Norway his perceived snub for the Nobel Peace Prize meant he no longer feels obligated to "think only of peace." The prize is awarded by the private Nobel Institute, not the Norwegian government. Ed O'Keefe has more, and then Holly Williams joins with analysis.

Washington

Greenland Stand-Off

Trump ties Greenland threat to perceived Nobel Peace Prize snub

Valentino Garavani, founder and namesake of the luxury fashion empire Valentino, has died at 93. Garavani was known for a trademarked shade of red, a staple at his fashion shows for nearly half a century.

Rome

Iconic fashion designer Valentino Garavani dead at 93

Experts studying the cause of the derailment of a high-speed train in Spain - which killed dozens of people - found a broken joint on the rails, according to a source with knowledge of the investigation.

Adamuz

Investigators find broken joint on track at Spanish rail crash site

Prince Harry is back in a London court, along with a slew of other high-profile figures, fighting the publisher of the Daily Mail over invasion of privacy and illegal information gathering tactics.

London

Prince Harry back in London court fighting British tabloids

U.S. President Donald Trump has told Norway's prime minister in a letter that he no longer feels obligated "to think purely of Peace" because he had not been awarded the Nobel Peace Prize, and he repeated his demand for control of Greenland.

Trump tells Norway he no longer feels obligated to think only of peace

Billionaire wealth surged at three times ‍its recent pace ​last year to reach its highest level on record, deepening economic and political divides that threaten democratic ⁠stability, anti-poverty group Oxfam said.

World billionaire wealth hits new peak amid rising poverty, Oxfam says

A high-speed train collision that caused a derailment in southern Spain has killed at least 39 people, officials say. Investigators are working to determine the cause of the crash.

High-speed train crash in Spain kills dozens

Prime Minister Mark Carney is considering sending Canadian Forces personnel to Greenland for military exercises with NATO allies in the wake of U.S. President Donald Trump's tariff threats on European nations who block his efforts to acquire the island, two senior Canadian officials told CBC News.

Ottawa

Carney considering sending troops to Greenland for NATO exercises

The deal followed hours after the Syrian army seized oil and gas fields and two major northeastern towns in clashes with the SDF. Fighting earlier this month has displaced tens of thousands.

Aleppo

Syrian government agrees to ceasefire with Kurdish-led SDF

European countries held an emergency meeting in Brussels Sunday in response to President Trump's post threatening tariffs against countries that have sent military forces into Greenland amid his push to annex the Arctic island.

Brussels

European leaders denounce Trump's tariff threat over Greenland

After 25 years of talks, the EU signed the EU-Mercosur trade deal on Saturday, creating a 700 million-person free-trade area. Ratification is still pending, however, with the European Parliament set for a heated debate.

Asunción

EU seals contentious trade deal with Mercosur countries

European governments blasted U.S. President Donald Trump’s announcement that eight countries will face 10% tariff for opposing American control of Greenland beginning next month.

Nuuk

European governments condemn Trump's tariff threats over Greenland

Palestinians in Gaza expressed both concern and hope after the White House announced some members of a so-called "Board of Peace" that will supervise the temporary governance of the war-torn enclave, which has been under a fragile ceasefire since October.

Jerusalem

Middle East Conflict

Gazans wary as U.S. names 'Board of Peace' under Trump's plan

U.S. President Donald Trump has threatened to raise tariffs on eight European countries until they allow the U.S. to buy the autonomous Danish territory.

Trump escalates pressure on Europe over Greenland control

Protesters who support the surge of federal immigration officers in Minneapolis have clashed with counter-protesters, while state officials announced that the Minnesota National Guard had been mobilized. Adding to the mayhem was the freezing January weather.

Minneapolis

Pro and anti-ICE protesters clash in Minneapolis

Iran's supreme leader blamed the U.S. for the protests against his regime that resulted in a violent crackdown. Willie James Inman has President Trump's response.

Tehran

Iran blames U.S. for protests, Trump punches back

President Trump announced that he would institute 10% tariffs on eight European countries who oppose his plan to put Greenland under U.S. control. The announcement came after a bipartisan group of congressional lawmakers flew to Denmark to express support for keeping Greenland under Danish control.

Trump announces new tariffs on European countries who backed Greenland

Large crowds of demonstrators marched through Copenhagen and other Danish cities on Saturday in support of Greenland's sovereignty amid tensions with the US.

Copenhagen

Thousands take part in 'Hands off Greenland' protests in Denmark

The United States will impose increasing tariffs on several European countries until the U.S. is able to purchase Greenland, President Donald Trump announced on Truth Social. Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face the tariff.

Global Tariffs

Trump threatens tariffs against European nations over Greenland support

Ugandan President Yoweri Museveni won his seventh term with 71.65% of votes, according to official results Saturday, defeating the youthful challenger who campaigned for change after four decades of the same government.

Kampala

Uganda's President Yoweri Museveni wins seventh term

There will be no territorial concessions in Ukraine, the Ukrainian president said, answering Euronews' question on whether Kyiv is now being pressured into territorial concessions.

Ukraine Invasion

Ukraine will not cede any of its territory, Zelenskyy says

The United States on Thursday said Iran halted 800 executions of protesters under pressure from President Donald Trump, after Gulf allies appeared to pull him back from military action over Tehran's deadly crackdown on demonstrations.

U.S. claims Iran halts executions of protesters amid crackdown

Venezuelan opposition leader María Corina Machado met with President Donald Trump on Thursday at the White House. She presented Trump with her Nobel Peace Prize medal, which was seen as a peace offering to win his support.

Venezuela Strikes

Venezuelan opposition leader presents Trump with her Nobel Peace Prize

A U.S. Senate delegation is meeting with Danish officials on Friday to defuse the standoff between President Donald Trump and Denmark over Greenland. Denmark sent soldiers to Greenland and they will be joined by military units from various NATO allies.

NATO troops head to Greenland amid Trump's threats

NASA says it could be just weeks away from launching astronauts on a flight around the moon for the first time in more than half a century. Final preparations are underway at Kennedy Space Center in Florida, where the Artemis II moon rocket is expected to roll out to the launch pad on Saturday.

Cape Canaveral

Final preparations for Artemis II launch underway

A South Korean court on Friday (January 16) sentenced former President Yoon Suk Yeol to five years in prison on charges that included obstructing attempts by authorities to arrest him following his failed bid to impose martial law in December 2024.

Seoul

Five years' jail for South Korea's Yoon in first martial law penalty

US President Donald Trump is threatening to use military force against Americans after clashes between protestors and law enforcement in Minneapolis. The city has been on edge since the fatal shooting of a protester, Renee Good, by an ICE officer.

Trump threatens to use military against Minneapolis protests

The U.S. and Taiwan clinched a trade deal that cuts tariffs on many of the semiconductor powerhouse's exports, directs new investments in the U.S. technology industry and risks infuriating China.

U.S., Taiwan strike deal on tech tariffs risking China's ire

The United Nations Security Council has held an emergency meeting to discuss the deadly anti-establishment protests in Iran at the request of the United States. President Donald Trump has refused to rule out military action on Iran over the killing of protesters. Tehran has vowed to retaliate if that happens.

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Rise of AI