Microsoft has reported strong quarterly earnings, supported by continued demand for cloud computing and artificial intelligence services.

Its latest results have reassured investors that the company’s substantial spending on AI infrastructure is helping expand its business and generate stronger financial returns.

The technology company reported quarterly profit of $36.63 billion, or $4.92 per share, compared with $27.75 billion, or $3.72 per share, a year earlier. Its adjusted earnings also exceeded analysts’ expectations.

Microsoft’s Azure cloud computing business recorded revenue growth of 48%, while total cloud revenue increased by 30%.

The figures reflect continued demand from businesses seeking computing capacity for AI applications, data storage, and other digital services.

The results helped Microsoft shares rise in after-hours trading. Investors have been closely examining whether major technology companies can turn their significant investments in data centers and AI systems into sustainable revenue and profits.

Microsoft’s performance contrasts with concerns surrounding some of its competitors, whose spending has raised questions about profitability and cash flow.

The company will need to maintain cloud growth and manage its infrastructure costs to sustain investor confidence as competition in AI intensifies.

Sources: The Wall Street Journal, Investopedia.