Microsoft earnings: AI engine powers growth despite cloud revenue miss

The news: Microsoft reported stronger-than-anticipated Q1 2025 earnings in spite of its cloud revenue growth missing estimates. 

  • The company’s revenues rose 16% YoY to $65.59 billion, with net income at $24.67 billion, up 10.68% YoY. 
  • AI continued to transform Microsoft’s offerings, and Azure AI, GitHub Copilot, and Microsoft 365 Copilot are fueling enterprise adoption.