Washington [US], July 30 (ANI): Microsoft reported strong financial results for the quarter ended June 30, with net profit rising 31 per cent year-on-year to USD 35.8 billion, while revenue increased 18 per cent to USD 90 billion, driven by continued demand for its cloud and artificial intelligence offerings.

The technology giant said operating income rose 18 per cent year-on-year to USD 40.6 billion. Diluted earnings per share (EPS) came in at USD 4.81, up 32 per cent on a GAAP basis compared with the same period last year.

On a non-GAAP basis, which excludes the impact from investments in OpenAI, Microsoft reported net income of USD 35.3 billion, up 22 per cent, while diluted EPS stood at USD 4.74, an increase of 23 per cent.

The company said several one-time items had a positive impact on its quarterly performance compared with the guidance it had issued on April 29. These factors together added USD 0.27 to diluted earnings per share.

Microsoft said the quarter included a USD 3.2 billion gain from its investment in Anthropic and lower-than-expected expenses related to its Voluntary Retirement Program. These gains were partly offset by severance expenses and impairment charges in its Xbox business.

'When adjusting for these items, we exceeded expectations across revenue, operating income, and diluted earnings per share,' the company said.

Commenting on the results, Microsoft Chairman and Chief Executive Officer Satya Nadella said the company continues to help customers generate business value through artificial intelligence.

'We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,' Nadella said.

He added that Azure revenue surpassed USD 100 billion for the first time this year, while Microsoft 365 Copilot crossed 30 million paid seats, reflecting growing customer adoption of the company's AI offerings.

Microsoft Executive Vice President and Chief Financial Officer Amy Hood said the company closed the fiscal year on a strong note, supported by growth in its cloud business.

'We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of USD 59.3 billion, up 27 per cent year-over-year,' Hood said. (ANI)