Overview
- Microsoft reported revenue up 18% to about $83 billion with operating income up 20%, showing a strong headline quarter.
- The commercial backlog, called remaining performance obligations and representing signed work not yet recognized as revenue, reached $627 billion but rose only about $2 billion from the prior quarter.
- Microsoft said that excluding OpenAI, commercial RPO grew 26% year over year and commercial bookings rose 7%, signaling that recent gains lean on a single large partner.
- Azure’s growth rate changed little even as costs for AI chips and new data centers rise, raising questions about the payoff from added capacity.
- The stock fell about 5% after the results and is still down roughly 14% this year, reflecting doubts about how fast AI investments will translate into broad customer revenue.