Microsoft reported third-quarter profits of $36.6bn and revenue of $92.3bn, up 19% year-over-year, driven by a 30% surge in its cloud computing business. The results came days after the company announced plans to offer buyouts to around 60,000 workers, roughly a quarter of its 220,000-person workforce, to cut costs as it invests billions in artificial intelligence infrastructure.
Chief executive Satya Nadella said AI development has delivered "real-world impact across every industry." Microsoft shares rose 2.9% in after-hours trading. The company flagged risks including "substantial investments" in AI as potential uncertainties to its finances.
The buyout offer applies to eligible employees across the US, UK, Canada and India. Microsoft said the move creates "greater flexibility" and offers financial support and career planning resources to departing workers.
The results contrast with Alphabet, which reported a 25% drop in quarterly net profit and disappointed investors on the same day. Big tech companies including Amazon, Meta and Alphabet are expected to spend more than $700bn this year on AI chips and infrastructure.