Microsoft - Where is the AI?

It was the lack of the revenue contribution of AI that made analysts disappointed.

When there are expectations, there will be disappointments

But that said, how was Microsoft's performance?

As mentioned previously, Microsoft's equal contributions from its 3 revenue have now seen cloud as the main vertical. Intelligent cloud grew 15% to hit USD 24 billion, while productivity and business processes also registered a 10% YoY growth.

The impressive uptick in revenue also came with a strong gross margin of 70%, which increased by 2 percentage points.

Operating income also grew by 18%, while earnings per share rode the trend to grow by 21%.

Free cash flow might well be the golden metric for established and stable companies.

And Microsoft sure is killing it on this one.

Operating cash flow grew 16%, while free cash flow also grew by 12%.

However, if based on a non-GAAP perspective, free cash flow actually did 19% YoY.

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