AI is the real MVP for Microsoft's incredible revenue boost

Already, Xbox content shattered any expectations thanks to the recent activision deal. However, Microsoft’s investment in Cloud services and AI paid off handsomely as well.

The Redmond giant’s Q2 figures for FY24 are through the roof thanks to their Cloud and AI investments throughout the last years.

What drove the Microsoft’s revenue boost?

	Q2 2023	Q2 2024	Year-over-year change
Revenue	$52.7 billion	$62 billion	17.5%
Earnings Per Share	$2.20	$2.93	33%
Net Income	$16.4 billion	$21.9 billion	33%

Microsoft’s revenue has gone up 18% from the same quarter last year, totaling $62 billion, while analysts anticipated a $61 billion mark.

Except Xbox content and services, Microsoft Cloud, Azure and other cloud services had the best year over year growth. Microsoft Cloud alone rose 24% and Azure and its cloud services grew by a whopping 30%.

If we add here the Dynamics products and cloud services that also climbed 22%, we have a clear picture of Microsoft’s success.

However, Microsoft’s CEO, Satya Nadella had another interesting statement regarding the company’s favorable outcome:

By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.

Therefore, the real actor that shines in this successful picture was the AI and the fact that Microsoft infused all their products and services with AI engines and technology.

Another notable mention is the 19% climb for the personal computing revenue and the 13% revenue increase in the productivity and business processes area.

So, unsurprisingly, Microsoft’s solid investments in Cloud products and services and their engagement in new technologies such as AI really paid off.

While AI is still in early deployment in every single IT area you can imagine, we can expect further growth and automation in the industry.