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Microsoft takes the market by storm after a stunning earnings report

Good morning! This week, Microsoft released its latest quarterly earnings, after an impressive start to the year. The company has not only joined the three trillion-dollar club, but has also overtaken Apple as the world's most valuable company.

Here's a breakdown of the key points:

• Microsoft's revenue and earnings-per-share both exceeded expectations. Revenue reached $62.02 billion, surpassing the expected $61.14 billion. Earnings-per-share were $2.93, higher than the anticipated $2.78.

• Net income saw a significant increase of 33%, reaching nearly $22 billion.

• The company's cloud revenue was a standout, hitting $33.7 billion, which is above the forecasted $32.21 billion. The Microsoft Cloud's run rate is now approximately $135 billion.

• Gaming revenue also saw a pick up, buoyed by the successful acquisition of Activision Blizzard, which contributed $2.1 billion.

However, the spotlight is on artificial intelligence (AI) and its integration across Microsoft’s technology stack, which is generating new customer experiences and driving productivity gains. Despite these advancements, the company faces similar challenges along with the rest of the tech sector, and had to cut 1,900 jobs.

Nevertheless, the strong growth it has experienced in cloud and gaming has helped bolster its overall performance. The company's focus now remains on AI-driven innovation. Take a look a the chart below to visually see how the breakdown of Microsoft’s income statement looks.

Source: App Economy Insights

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