The company said revenue from artificial intelligence and voice technology services offered by its Nuance unit will now be included in its productivity business (home to the Office suite of applications) rather than the intelligence business. cloud The restructuring will allow Microsoft to align its reporting structure with the way its business is run, he said.
As a result, the company reaffirmed revenue growth across its divisions for the last fiscal year and revised its forecast for the July-September quarter.
Big tech companies including Microsoft and Googleare facing pressure from investors to prove that the billions of dollars they have been investing in AI infrastructure will pay off.
Microsoft is one of the few major companies to break out AI contributions in its quarterly earnings, as most companies have yet to see a major boost from AI investments.
The Windows maker reported last month that artificial intelligence provided a further boost to Azure in the June quarter, even as overall business slowed. Microsoft expects Azure growth to accelerate in the second half of fiscal 2025.
Discover the stories that interest you
The company expects intelligent cloud revenue to be between $23.8 billion and $24.1 billion in the first quarter, up from its previous guidance of $28.6 billion and $28.9 billion. Quarterly revenue in its personal computing segment is expected to be between $12.25 billion and $12.65 billion, up from its previous guidance of $14.9 billion and $15.3 billion, after the company moved some units from the business division to the productivity division.
Productivity and business process revenue is expected to be between $27.75 billion and $28.05 billion, compared with $20.30 billion and $20.60 billion previously.
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.